Fed's Powell Says We Are Trying To Identify A Place We Are Confident On Inflation To Begin Process Of Dialing Back Restrictive Level; We Need Confirmation Inflation Is Coming Down Sustainably
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated the Fed is seeking a point of confidence regarding inflation to start reducing restrictive measures. The Fed requires sustainable evidence of declining inflation before easing policies.
January 31, 2024 | 7:43 pm
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NEUTRAL IMPACT
Powell's comments suggest a cautious approach to policy easing, which may lead to market volatility as investors anticipate the Fed's next moves.
Powell's statement implies that the Fed is not yet ready to ease its restrictive policies, which could maintain the status quo in the markets. The SPY, which tracks the S&P 500, is likely to experience short-term volatility as investors digest this information and adjust their expectations for interest rates and economic growth.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80