Fed's Daly Says Bond Yields Still Up From Where They Were At September FOMC; If Financial Conditions Eased More Fed Would Need To Take Note; If Inflation Doesn't Ebb Further Fed Would Likely Have To Hike Again; Sufficiently Restrictive Policy Is Something That Clearly Lowers Inflation
Portfolio Pulse from Benzinga Newsdesk
Fed's Daly commented on bond yields being higher since the September FOMC meeting and noted that if financial conditions eased more, the Fed would need to take note. Daly also mentioned that if inflation does not continue to decrease, the Fed would likely have to raise interest rates again.
November 10, 2023 | 6:12 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Fed's Daly's comments on potential interest rate hikes if inflation doesn't decrease could lead to increased market volatility and potentially impact SPY negatively in the short term.
Fed's Daly's statements suggest that the central bank is closely monitoring inflation and financial conditions. If the Fed raises interest rates to combat persistent inflation, this could lead to a decrease in stock prices as borrowing costs rise and economic growth may slow. As SPY is a broad market ETF, it is sensitive to changes in monetary policy and investor sentiment regarding the economic outlook.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70