Fed's Powell Says In Determining If We Need More Firming, We Will Take Into Account Cumulative Tightening, Lags And Economic And Financial Developments; Reducing Inflation Likely To Require Below Potential Growth, Labor Conditions Softening
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell stated that the Federal Open Market Committee (FOMC) will consider cumulative tightening, lags, and economic and financial developments in determining if more firming is needed. He also mentioned that reducing inflation may require below potential growth and softening labor conditions.
November 01, 2023 | 6:37 pm
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The Federal Reserve's potential actions to tighten monetary policy could impact the overall market, represented by the SPY ETF. The possibility of below potential growth and softening labor conditions could lead to a negative market reaction.
The Federal Reserve's monetary policy decisions have a significant impact on the overall market. If the Fed decides to tighten monetary policy, it could lead to higher interest rates, which could negatively impact stock prices. Additionally, the mention of below potential growth and softening labor conditions could signal a slowing economy, which could also negatively impact the market.
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IMPORTANCE 90
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