Fed's Daly Says Fewer Cuts Would Be Warranted If Inflation Progress Stall; Says More Cuts Could Be Appropriate if Inflation Falls Faster; Says 3 Rate Cuts Could Be Needed in 2024 to Avoid Over
Portfolio Pulse from Benzinga Newsdesk
Fed's Daly suggests that fewer rate cuts would be necessary if inflation progress stalls, while more cuts could be appropriate if inflation falls faster. Daly also indicates that up to three rate cuts could be needed in 2024 to prevent overshooting the inflation target, according to a WSJ report.

December 18, 2023 | 8:56 pm
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NEUTRAL IMPACT
Fed's Daly's comments on potential rate cuts depending on inflation trends could influence market sentiment and impact SPY, an ETF tracking the S&P 500, as it reflects investor expectations about monetary policy and economic health.
While Daly's comments provide insight into the Fed's potential actions, they are speculative and contingent on future inflation data. This creates uncertainty, leading to a neutral score. However, the relevance is high as SPY is closely tied to investor sentiment about the economy and interest rates. The importance is moderate because the comments are about future actions rather than immediate changes. Confidence is relatively high due to the direct relationship between Fed policy and market performance, but not absolute due to the conditional nature of Daly's statements.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70