Fed's Powell Says We Need Greater Confidence Before We Reduce Policy Rate; Continue To Make Decisions Meeting By Meeting
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Jerome Powell emphasized the need for greater confidence before reducing the policy rate. The Federal Reserve will continue to make decisions on a meeting-by-meeting basis, indicating a cautious approach to monetary policy adjustments.
January 31, 2024 | 7:38 pm
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NEUTRAL IMPACT
Jerome Powell's comments suggest a cautious approach to lowering policy rates, which may lead to a mixed impact on the SPY ETF as investors digest the implications for economic growth and inflation.
Powell's statement is non-committal and suggests that the Fed is not in a hurry to change the policy rate, which could lead to uncertainty in the market. The SPY ETF, which tracks the S&P 500, may see some volatility as investors try to anticipate the Fed's next moves. However, without a clear direction on policy changes, the immediate impact on SPY is likely to be neutral.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 70