Fed's Waller Says If Saw Inflation Coming Down To 2.5%, Taylor Rule Would Say To Cut Rates
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Christopher Waller stated that if inflation were to decrease to 2.5%, the Taylor Rule would suggest a cut in interest rates. This could potentially impact the broader market, including ETFs like SPY.
October 18, 2023 | 4:28 pm
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A potential cut in interest rates, as suggested by Fed's Waller, could lead to an increase in the price of SPY, as lower rates generally boost stock prices.
Interest rates and stock prices are generally inversely related. If the Federal Reserve cuts rates, it could lead to cheaper borrowing costs, encouraging investment and spending, which could boost stock prices, including ETFs like SPY.
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