Fed's Waller Says Monetary Policy Will Need To Do The Work From Here; Premature To Rely On Productivity Growth Gains To Guide Stance Of Fed Policy
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Governor Christopher J. Waller emphasized that monetary policy should be the primary tool for managing the economy, rather than relying on potential productivity growth. Waller's comments suggest a continued focus on adjusting interest rates and other monetary levers to influence economic conditions, rather than assuming productivity gains will alleviate the need for such interventions.
November 28, 2023 | 3:08 pm
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Waller's remarks may lead to increased market volatility as investors anticipate continued interest rate adjustments by the Fed, potentially affecting the SPY ETF which tracks the S&P 500.
Governor Waller's comments suggest that the Fed is not ready to ease up on monetary policy adjustments, which could lead to higher interest rates. This may result in a negative short-term impact on the stock market, as higher rates can reduce the attractiveness of equities, including those within the SPY ETF.
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