Fed Chair Powell Says Policy Is Probably 'Significantly Restrictive'; Real Rates Are Above 2%
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has stated that the current monetary policy is likely 'significantly restrictive', with real interest rates above 2%. This could indicate a potential slowdown in economic activity.
November 09, 2023 | 8:31 pm
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NEGATIVE IMPACT
The statement by Fed Chair Powell could lead to a potential slowdown in economic activity, which may negatively impact the performance of SPY, an ETF that tracks the S&P 500.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. If the Federal Reserve's policy is indeed 'significantly restrictive', it could slow down economic activity, which would likely lead to a decrease in corporate earnings and thus negatively impact the stock market and the performance of SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50