Fed's Powell Says Highly Attentive To Risks Inflation Poses To Both Sides Of Mandate; Our Restrictive Stance Is Putting Downward Pressure On Economic Activity And Inflation; Our Policy Rate Is Likely At Its Peak
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that the Federal Reserve is highly attentive to the risks inflation poses to its dual mandate. The current restrictive monetary policy is exerting downward pressure on economic activity and inflation. Powell also suggested that the policy interest rate is likely at its peak, signaling a potential pause in rate hikes.
January 31, 2024 | 7:36 pm
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POSITIVE IMPACT
Fed Chair Powell's comments suggest a potential pause in interest rate hikes, which could stabilize or boost investor confidence, possibly leading to a positive impact on the SPY ETF in the short term.
Powell's remarks about the policy rate potentially being at its peak could be interpreted by investors as a sign that the aggressive rate hikes may slow down or pause, which is generally positive for the stock market. This could lead to increased investor confidence and a potential uplift in the SPY ETF, which tracks the S&P 500 and is a broad indicator of the US stock market's performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80