Powell Says Consumer Spending Has Been 'Surprisingly Strong;' Says Credit Card Use, Defaults, Mean Spending May Be Slowing; Says As Long As Unemployment Remans Low With Wages Rising Some Spending Will Continue
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell noted that consumer spending has remained 'surprisingly strong' but also pointed out that increased credit card use and defaults could indicate a slowdown in spending. He mentioned that as long as unemployment stays low and wages continue to rise, some level of consumer spending is likely to persist.
December 01, 2023 | 5:03 pm
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NEUTRAL IMPACT
Powell's comments on strong consumer spending may support market confidence, but warnings of a potential slowdown could create caution among investors. SPY, tracking the broader market, may see mixed reactions.
Jerome Powell's remarks have a nuanced impact on SPY. On one hand, the strong consumer spending is a positive sign for the economy and could lead to a bullish sentiment for the stock market. On the other hand, the mention of increased credit card use and defaults could signal economic stress, potentially leading to bearish sentiment. The overall impact on SPY is likely to be neutral in the short term as these factors may balance each other out.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70