Fed's Powell Says Policy Rate Well Into Restrictive Territory; Risks To Achieving Goals Moving Into Better Balance; Activity In Housing Sector Subdued; Labor Market Remains Tight; Job Gains Are Still Strong
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicates that the policy rate is now well into restrictive territory, suggesting a more balanced approach to achieving economic goals. Housing sector activity remains subdued, while the labor market is tight with strong job gains continuing.
January 31, 2024 | 7:33 pm
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Fed Chair Powell's comments on the policy rate being in restrictive territory and a balanced approach to economic goals may influence market sentiment and impact SPY.
Powell's statement suggests a cautious approach to further rate hikes, which could stabilize market expectations. However, the mention of a tight labor market and strong job gains may also signal continued economic strength, leading to a neutral short-term impact on SPY as investors digest the implications.
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