Cleveland Fed Pres. Mester Says We Are At Or Very Near The Peak Of Rates; Main Question Is How Long Fed Needs To Keep Rates High; We Need To Keep Policy Restrictive For Long Enough To Hit Inflation Goal
Portfolio Pulse from Benzinga Newsdesk
Cleveland Fed President Mester stated that we are at or very near the peak of rates. The main question is how long the Fed needs to keep rates high. The policy needs to be restrictive for long enough to hit the inflation goal.
October 06, 2023 | 7:39 pm
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NEUTRAL IMPACT
The statement by Cleveland Fed President Mester about the peak of rates could impact the SPY ETF. The duration of high rates to achieve inflation goals could affect market sentiment.
The Federal Reserve's decisions on interest rates directly impact the overall market, which is represented by the SPY ETF. If rates are at their peak, this could signal a slowing of economic growth, potentially impacting investor sentiment and the value of SPY. However, the exact impact will depend on how long the Fed decides to keep rates high.
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IMPORTANCE 80
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