Fed's Powell Says Reducing Policy Restraint Too Soon Or Too Much Could Reverse Inflation Progress; At Same Time, Reducing Policy Rate Too Late Could Unduly Weaken The Economy; We Will Assess Incoming Data And Balance Of Risks To Make Decisions
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Jerome Powell emphasized the importance of balancing the reduction of policy restraint to avoid reversing progress on inflation while also being cautious not to weaken the economy by acting too late. The Fed will make decisions based on incoming data and the balance of risks.
January 31, 2024 | 7:37 pm
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NEUTRAL IMPACT
Jerome Powell's comments on the careful adjustment of policy rates may influence investor sentiment and market volatility, potentially impacting SPY as it tracks the broader market.
Powell's statement is non-committal and suggests a wait-and-see approach, which is likely to maintain the status quo in the short term. However, as SPY reflects the broader market, any perceived uncertainty or anticipation of future rate decisions could cause some volatility.
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