Fed's Powell Says It's Still A Very Tight Labor Market, But It's Getting Looser; I Don't Think Most Of Inflation Is From Job Market, Was Demand Driven
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell stated that the labor market remains tight, but is gradually loosening. He also mentioned that most of the inflation is not due to the job market, but rather demand-driven.
October 19, 2023 | 4:55 pm
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NEUTRAL IMPACT
Powell's comments on the labor market and inflation could impact the broader market, represented by SPY. A looser labor market may lead to increased consumer spending, while demand-driven inflation could affect interest rates.
Powell's comments indicate a potential shift in economic conditions. A looser labor market could lead to increased consumer spending, which would generally be positive for the stock market. However, demand-driven inflation could lead the Fed to raise interest rates, which could negatively impact the stock market. The net impact on SPY is uncertain, hence the neutral score.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75