Fed's Mester Says We Are Not There Yet To Cut Rates, Want More Evidence Economy Progressing As Expected; This Is The Year We Will Start To Have The Conversations On The Balance Sheet
Portfolio Pulse from Benzinga Newsdesk
Fed's Mester emphasized the need for more evidence that the economy is progressing as expected before considering rate cuts. She mentioned that discussions on the balance sheet would start this year, indicating a cautious approach to monetary policy adjustments.
January 11, 2024 | 4:55 pm
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NEUTRAL IMPACT
Fed's Mester's comments on holding off on rate cuts and upcoming balance sheet discussions may lead to cautious investor sentiment, potentially affecting SPY as it reflects the broader market.
Mester's comments suggest a wait-and-see approach to monetary policy, which can lead to uncertainty in the markets. As SPY tracks a broad range of stocks, it is sensitive to changes in investor sentiment driven by Fed policy signals. However, without specific policy changes, the immediate impact may be neutral.
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