Fed Chair Powell Says We Added Word 'any' To Show We Thought We Likely At Or Near Peak For Rates; Participants Did Not Want To Take Possibility Of Further Hikes Off The Table; Not Likely We Will Hike Further
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that the word 'any' was added to recent communications to suggest that interest rates are likely at or near their peak. However, the possibility of further hikes has not been ruled out, as participants want to keep their options open.
December 13, 2023 | 7:41 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility as investors digest Powell's comments on interest rates potentially being at or near their peak, with further hikes still on the table.
Powell's statement introduces uncertainty into the market, which can lead to increased volatility. While the suggestion that rates are near the peak could be positive for stocks, the openness to further hikes adds a level of caution. This could result in a neutral short-term impact on SPY as the market processes these mixed signals.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80