Fed's Powell Says While We Believe Our Policy Rate Is Likely At Our Near Its Peak For This Cycle We Have Been Surprised In The Past; Prepared To Tighten Policy Further If Appropriate; Will Keep Policy Restrictive Until Confident On Path To 2% Inflation
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that the policy interest rate is close to or at its peak for the current cycle, but the Fed is prepared to tighten policy further if necessary. The Fed aims to maintain a restrictive policy stance until it is confident that inflation is on a path to its 2% target.
December 13, 2023 | 7:38 pm
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NEUTRAL IMPACT
Powell's comments suggest a cautious approach to rate hikes, which may lead to a mixed short-term impact on the SPY ETF as investors digest the implications for economic growth and inflation.
Powell's remarks imply a potential slowdown in the pace of interest rate hikes, which could be seen as positive for stocks in the short term. However, the commitment to further tightening if necessary and maintaining a restrictive policy until inflation is under control could also signal caution, leading to a neutral short-term impact on SPY.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80