Fed's Waller Says We Can Run Our Balance Sheet Down A Total Of $2T-$2.5T And Keep Reserves Ample
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Governor Christopher Waller stated that the Fed could reduce its balance sheet by $2 trillion to $2.5 trillion while still maintaining ample reserves. This statement may have implications for the overall market, including the SPDR S&P 500 ETF (SPY).
October 18, 2023 | 4:24 pm
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NEUTRAL IMPACT
The Fed's potential balance sheet reduction could impact the SPY ETF, as it reflects the overall market which is influenced by the Fed's monetary policy.
The Federal Reserve's monetary policy, including changes to its balance sheet, can have significant effects on the overall market. As SPY is an ETF that tracks the S&P 500 and thus reflects the broader market, any major policy changes by the Fed could potentially impact its performance. However, the exact impact will depend on various factors, including the timing and scale of the balance sheet reduction, and market participants' reactions.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75