Fed's Collins Says Fed At Or Near Peak Of Rate Hike Cycle; Too Soon To Take Prospect Of Additional Rate Hike Off Table; Bond Yield Rise Likely Reduces Need For Near-Term Fed Hike; Latest CPI Data Underscore Uneven Progress Toward 2% Target
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Collins suggests that the Fed is at or near the peak of its rate hike cycle, but it's too early to rule out additional rate hikes. The rise in bond yields likely reduces the need for a near-term Fed hike. The latest CPI data shows uneven progress towards the 2% target.
October 12, 2023 | 8:04 pm
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NEUTRAL IMPACT
The comments from Fed's Collins about the rate hike cycle and bond yields could impact the SPY ETF, which tracks the S&P 500 and is sensitive to interest rate changes.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in interest rates. If the Fed is indeed near the peak of its rate hike cycle, this could stabilize or even boost the ETF if investors see this as a sign of economic stability. However, the possibility of additional rate hikes and the uneven progress towards the 2% inflation target introduces uncertainty, which could also impact the ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75