Fed's Powell Says Markets May Be Responding To Deficits, Fed Balance Sheet Actions; Bond Yield Rise Is Tightening Financial Conditions; Bond Yield Rise Is Not Principly About Expectations Of Fed Doing More
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has suggested that the rise in bond yields may be due to market reactions to deficits and the Fed's balance sheet actions. He also noted that the increase in bond yields is tightening financial conditions.
October 19, 2023 | 4:43 pm
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NEGATIVE IMPACT
The rise in bond yields, as suggested by Fed's Powell, could impact the SPY ETF. Higher yields can make bonds more attractive compared to stocks, potentially leading to a sell-off in the stock market.
The SPY ETF tracks the S&P 500, a broad measure of the US stock market. If bond yields rise, as suggested by Fed's Powell, this could make bonds more attractive compared to stocks. This could potentially lead to a sell-off in the stock market, negatively impacting the SPY ETF.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75