Fed's Powell, On Balance Sheet, Said We Discussed Issues Related To Slowing Pace Of Decline In Holdings; Says General Sense Is To Slow Pace Of Run Off Fairly Soon
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that the Fed has discussed slowing the pace of decline in its balance sheet holdings. He mentioned that there is a general consensus to reduce the pace of the runoff soon.
March 20, 2024 | 6:40 pm
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The SPDR S&P 500 ETF Trust (SPY) may experience short-term price fluctuations due to Powell's comments on slowing the balance sheet runoff, as it reflects broader market sentiment.
Jerome Powell's comments on the potential slowing of the Fed's balance sheet reduction can impact investor sentiment and market liquidity, potentially leading to a positive short-term impact on the SPY ETF as it closely tracks the performance of the S&P 500, which might benefit from a more accommodative monetary policy stance.
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IMPORTANCE 75
RELEVANCE 80