Fed Chair Powell Says Watching Reserves Level Carefully; Not At The Level Of Reserves When Would Need To Slow Or Stop Balance Sheet Runoff; Policy Rate And Balance Sheet Reduction On Different Tracks
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Jerome Powell stated that the Federal Reserve is carefully monitoring the level of reserves and that they have not reached the point where it would be necessary to slow or stop the balance sheet runoff. He emphasized that the policy rate and balance sheet reduction are on separate tracks, indicating that adjustments to the balance sheet policy will not necessarily be made in tandem with interest rate changes.
December 13, 2023 | 8:16 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on the careful monitoring of reserves and the separation of policy rate and balance sheet tracks may influence investor sentiment, potentially affecting the performance of SPY, which tracks the S&P 500.
While Powell's comments provide insight into the Fed's approach to monetary policy, they do not indicate an immediate change in policy that would directly affect the S&P 500 and thus SPY. However, his remarks could influence market expectations and sentiment, which can have a short-term impact on the index's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70