Fed's Logan Says If Higher Long-Term Rates Are Due To Higher Term Premiums, There May Be Less Need For Fed To Raise Rates; Higher Term Premiums Have 'clear Role' In Higher Long-term Rates; Uncertain How Big
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Logan suggests that if higher long-term rates are due to higher term premiums, there may be less need for the Fed to raise rates. The role of higher term premiums in higher long-term rates is clear, but the magnitude is uncertain.
October 09, 2023 | 1:01 pm
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The comments from Federal Reserve's Logan may impact the SPY ETF. If the Fed doesn't raise rates due to higher term premiums, it could potentially lead to a more favorable environment for equities.
The SPY ETF, which tracks the S&P 500, could be impacted by the Federal Reserve's interest rate decisions. If higher term premiums reduce the need for rate hikes, this could potentially create a more favorable environment for equities, as lower interest rates generally support higher stock prices.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70