Fed's Goolsbee Says Inflation Will Be The Primary Determinant Of When And How Much Interest Rates Should Be Cut; Doesn't Want To Commit On Policy Decisions When Fed Still Has Weeks And Months Of Data To Come
Portfolio Pulse from Benzinga Newsdesk
Fed member Goolsbee indicates that inflation data will be the key factor in determining the timing and magnitude of any interest rate cuts. He emphasizes the importance of not committing to policy decisions prematurely, as the Fed awaits more data in the coming weeks and months.
January 11, 2024 | 8:41 pm
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The statement by Fed's Goolsbee suggests a cautious approach to interest rate cuts, which could lead to market volatility and impact ETFs like SPY that track the broader market.
As SPY is an ETF that tracks the S&P 500, it is sensitive to changes in Fed policy. Goolsbee's comments suggest a wait-and-see approach, which could lead to uncertainty in the market. This uncertainty may result in short-term volatility, but without a clear direction on policy, the impact on SPY is likely to be neutral until more definitive data or decisions are announced.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70