Fed's Powell Says The Question We Are Asking Is, Should We Hike More; There Is Plenty Of Risk Out There; The Bigger Picture Is We Are Making Progress On Labor Market, Inflation, And Very Focused On Getting Policy Sufficiently Restrictive
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that the central bank is considering more rate hikes due to the risks in the market. However, he also noted that progress is being made on labor market and inflation, and the focus is on making policy sufficiently restrictive.
November 01, 2023 | 6:50 pm
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The potential for more rate hikes by the Federal Reserve could impact the SPY ETF, as it tracks the S&P 500 which is sensitive to changes in interest rates.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. When the Federal Reserve increases interest rates, it can make borrowing more expensive, potentially slowing economic growth and negatively impacting stock prices. Therefore, the potential for more rate hikes could lead to a decrease in the value of the SPY ETF in the short term.
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