Fed's Powell Says Our Policy Rate Is Likely At Its Peak; Says Likely To Cut Rates At Some Point This Year; Says Prepared To Keep Rates High Longer If Needed
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that the current policy rate is likely at its peak and suggested the possibility of rate cuts later this year. However, he also mentioned the readiness to maintain higher rates for an extended period if necessary.
March 20, 2024 | 6:37 pm
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Jerome Powell's statement on the potential peak of policy rates and the possibility of rate cuts could lead to increased optimism in the markets, potentially boosting the SPY ETF.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in interest rates. Powell's indication of a peak in policy rates and the possibility of rate cuts could lead to increased market optimism, as lower interest rates generally support higher asset prices. However, the mention of readiness to keep rates high if necessary introduces uncertainty, moderating the potential impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90