Fed's Cook Says No Sure If Neutral Rate Is Higher Or Not, Will Likely Only Know After The Fact
Portfolio Pulse from Benzinga Newsdesk
Fed's Cook stated uncertainty about whether the neutral interest rate is higher, indicating that this would likely only be known after the fact, according to Reuters.
March 25, 2024 | 4:06 pm
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NEUTRAL IMPACT
Fed's Cook's comments on the uncertainty of the neutral interest rate may lead to increased market volatility, potentially impacting SPY.
Fed's Cook's remarks introduce uncertainty into the market, which can lead to increased volatility. Given SPY's nature as a broad market ETF, it is sensitive to changes in market sentiment and macroeconomic indicators. However, without a clear direction on interest rates, the impact remains neutral as the market digests this information.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 75