Fed Chair Powell Says You Need To Reduce Restriction On Economy Well Before 2%; Takes A While For Policy To Get Into The Economy; We Think The Supply-Side Help For Inflation Has 'Some Ways' To Run
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell emphasized the need to ease restrictions on the economy before reaching the 2% inflation target, acknowledging the time it takes for policy changes to affect the economy. He also noted that the supply-side contributions to reducing inflation still have 'some ways' to go.
December 13, 2023 | 8:12 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on easing economic restrictions and the supply-side's role in inflation may influence investor sentiment and market volatility, potentially impacting SPY.
Powell's statements suggest a cautious approach to monetary policy, which could lead to a mixed reaction in the markets. While the intent to ease restrictions might be seen as positive, the acknowledgment of a lag in policy impact and ongoing supply-side issues could maintain uncertainty, leading to a neutral short-term impact on SPY.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70