Fed's Jefferson Says He Expects Slower Growth In Spending, Output In 2024, However, That Continuing Strength In Spending An Upside Risk To His Forecast; Imbalance Between Labor Demand And Supply Has Narrowed; Progress On Inflation Reflects Supply And Demand Factors, As Well As Fed Policy Tightness
Portfolio Pulse from Benzinga Newsdesk
Fed's Jefferson anticipates slower growth in spending and output in 2024, but notes that strong spending remains an upside risk to his forecast. He observes a narrowing imbalance between labor demand and supply, attributing progress on inflation to supply and demand factors, alongside Fed policy tightness.
February 22, 2024 | 3:03 pm
News sentiment analysis
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NEUTRAL IMPACT
Jefferson's comments suggest a cautious outlook for the economy, which could influence market sentiment and impact SPY, a broad market ETF.
Jefferson's remarks on slower growth and inflation control efforts by the Fed could lead to mixed reactions in the market. While the caution about slower growth could dampen investor enthusiasm, the acknowledgment of strong spending and progress on inflation might mitigate negative impacts, leading to a neutral short-term outlook for SPY.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70