Fed Chair Powell Says On Labor Market, Wages Still Running Bit Above What Is Consistent With 2% Inflation; Unemployment Rate Is Very, Very Low; But Overall Development Of Labor Market Has Been Positive
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell commented on the labor market, noting that wages are slightly above the level consistent with a 2% inflation target. He acknowledged the extremely low unemployment rate but viewed the overall labor market development as positive.
December 13, 2023 | 7:58 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on wages and the labor market may influence investor sentiment and expectations about future inflation and interest rate policies, potentially impacting SPY as a broad market indicator.
Powell's statements on the labor market and wages are indicators of the Fed's perspective on economic health and inflation, which are key factors in determining monetary policy. While the comments are somewhat neutral, they suggest a continued focus on inflation control, which could lead to further interest rate adjustments. This can have a mixed impact on the SPY, as it may signal both a stable economy and potential for tighter monetary policy.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70