Fed's Powell Says Working With Regulators On Commercial Real Estate Trouble, There Will Be Losses; Doesn't See Systemic Risk From Commercial Real Estate Problems; Regional Banks Are Very Important; Mega Banks Are In Very Good Position
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has stated that the Fed is working with regulators to address issues in the commercial real estate sector. He acknowledged that there will be losses, but does not see systemic risk from these problems. Powell also emphasized the importance of regional banks and stated that mega banks are in a very good position.
October 19, 2023 | 4:59 pm
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NEUTRAL IMPACT
The statement by Fed's Powell about the lack of systemic risk from commercial real estate problems could stabilize the SPDR S&P 500 ETF (SPY).
The ETF SPY tracks the S&P 500, which includes companies from the real estate sector. Powell's comments about the lack of systemic risk could stabilize the ETF's price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
The statement by Fed's Powell about the good position of mega banks could positively impact the SPDR S&P Bank ETF (KBE), which includes mega banks.
The ETF KBE includes mega banks. Positive comments from the Fed's chairman about the position of these banks could increase investor confidence and potentially drive the ETF's price up.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The emphasis on the importance of regional banks by Fed's Powell could positively impact the SPDR S&P Regional Banking ETF (KRE).
The ETF KRE includes regional banks. Positive comments from the Fed's chairman about the importance of these banks could increase investor confidence and potentially drive the ETF's price up.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The positive comments by Fed's Powell about the banking sector could positively impact the Financial Select Sector SPDR Fund (XLF).
The ETF XLF tracks the financial sector, which includes both mega and regional banks. Positive comments from the Fed's chairman about these banks could increase investor confidence and potentially drive the ETF's price up.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70