FOMC Says Economy Expanded At 'Strong' Pace In Q3; Higher Long-term Interest Rates Likely To Weigh On Economic Activity, Hiring, Inflation; Job Gains Have Moderated Since Earlier In Year; Inflation Remains Elevated; Voted 12-0 For Fed Funds Rate Action
Portfolio Pulse from Benzinga Newsdesk
The Federal Open Market Committee (FOMC) reported that the economy expanded at a 'strong' pace in Q3. However, it warned that higher long-term interest rates could negatively impact economic activity, hiring, and inflation. Job gains have moderated since earlier in the year, and inflation remains elevated. The committee voted unanimously for the Fed funds rate action.
November 01, 2023 | 6:01 pm
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The FOMC's report of a strong Q3 economy but potential negative impacts of higher long-term interest rates could affect the SPY ETF, which tracks the S&P 500 and is sensitive to changes in the overall economy.
The SPY ETF, which tracks the S&P 500, is likely to be affected by the FOMC's report. While the strong Q3 economy is positive, the potential negative impacts of higher long-term interest rates could weigh on the ETF. These rates could slow economic activity and hiring, and keep inflation elevated, all of which could negatively impact the performance of the SPY ETF.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75