Fed's Stance Is Too Harsh, Economists Insist; Markets Price In 59% Chance Of Rate Cut By May (CORRECTED)
Portfolio Pulse from Piero Cingari
The National Association for Business Economics (NABE) survey reveals growing unease among economists towards the Federal Reserve's restrictive monetary policies, with a 59% chance of a rate cut by May. Financial markets anticipate up to five rate cuts by end of 2024, buoying the U.S. stock market to record highs, as evidenced by the SPDR S&P 500 ETF Trust (SPY) surpassing the 5,000-point mark. Despite recession fears, the U.S. economy's resilience has delayed downturn risks, with a mixed outlook on recession timing among economists.
February 12, 2024 | 3:41 pm
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SPDR S&P 500 ETF Trust (SPY) surpassed the 5,000-point mark, buoyed by expectations of Federal Reserve rate cuts and the U.S. economy's resilience.
The anticipation of Federal Reserve rate cuts and the resilience of the U.S. economy have led to a bullish sentiment in the stock market, directly benefiting the SPDR S&P 500 ETF Trust (SPY) as it reaches new highs. This positive momentum is likely to continue in the short term, given the market's expectations for monetary policy easing.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100