Fed's Mester Says Balance Sheet Drawdown Should Happen Regardless Of Interest Rate Moves; Fed Still Has Perhaps A Couple More Years Of Balance Sheet Cuts
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Loretta Mester stated that the balance sheet reduction should continue irrespective of interest rate changes. She also mentioned that the Fed might have a couple more years of balance sheet cuts.
October 20, 2023 | 5:24 pm
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NEGATIVE IMPACT
The Federal Reserve's decision to continue balance sheet reduction could impact the overall market, potentially affecting the SPY ETF.
The Federal Reserve's balance sheet reduction implies a tightening of monetary policy, which could lead to higher interest rates. This could potentially slow down economic growth, negatively impacting the overall market and the SPY ETF, which tracks the S&P 500.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75