Fed's Powell Says If Economy Evolves As Central Bank Expects, Most Federal Open Market Committee Participants See It As Likely Appropriate To Begin Cutting Policy Rate At Some Point This Year; To Do So, Fed Still Needs Greater Confidence Inflation Moving Sustainably Down Toward 2% Target
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that if the economy progresses as anticipated, most FOMC participants believe it may be appropriate to start reducing the policy rate later this year. However, this decision hinges on gaining more confidence that inflation is on a sustainable path back to the 2% target.
April 03, 2024 | 4:11 pm
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Powell's statement on potential rate cuts could lead to increased optimism in the markets, potentially boosting the SPY ETF as it reflects the broader market sentiment.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in Federal Reserve policies. Powell's indication of possible rate cuts if inflation targets are met could lead to increased market optimism, as lower interest rates generally support higher asset prices. However, the actual impact will depend on future inflation trends and the Fed's confidence in these trends.
CONFIDENCE 75
IMPORTANCE 90
RELEVANCE 80