Fed's Collins Says Important For Fed To Be Sure It's On Path To Lower Inflation; Doesn't Need To Go All The Way Back To 2% Inflation To Ease; Sees Limits To Supply Chain Improvement Aiding Lower Inflation; Jury Is Out When It Comes To Neutral Rate Level
Portfolio Pulse from Benzinga Newsdesk
Fed's Collins emphasized the importance of being on a path to lower inflation, stating it's not necessary to return to 2% inflation to begin easing. She also mentioned the limitations of supply chain improvements in aiding lower inflation and expressed uncertainty about the neutral rate level.
February 07, 2024 | 5:07 pm
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Collins' comments may lead to cautious optimism among investors, potentially stabilizing or slightly boosting SPY as it reflects broader market sentiment towards monetary policy and inflation expectations.
Collins' remarks suggest a careful but proactive approach to managing inflation, which could reassure investors about the Fed's commitment to stabilizing the economy without aggressive rate hikes. This sentiment can positively influence the broader market, as reflected in SPY.
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