Fed's Bowman Says It Is Not Yet Time For U.S. Central Bank To Consider Cutting Interest Rates; U.S. Central Bank's Policy 'Appropriately Calibrated' For State Of Economy; 'Eventually' Fed Will Cut Rates If Inflation Continues To EBB; Cutting Rates Too Soon Risks Rebound In Inflation Pressures
Portfolio Pulse from Benzinga Newsdesk
Fed's Bowman stated that it's not time for the U.S. Central Bank to consider cutting interest rates, asserting that the current policy is well-suited for the economy's state. However, she mentioned that rates could be cut 'eventually' if inflation continues to decrease, but warned that cutting rates too soon could risk a rebound in inflation pressures.
April 05, 2024 | 4:39 pm
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NEUTRAL IMPACT
Bowman's comments on interest rates and inflation may influence investor sentiment, potentially impacting the SPY ETF as it reflects the broader U.S. stock market.
Bowman's remarks indicate a cautious approach to monetary policy, which could lead to mixed reactions in the stock market. While the statement suggests stability, the mention of potential future rate cuts if inflation decreases could lead to speculative optimism. However, the warning against cutting rates too soon introduces uncertainty, making the overall impact on SPY neutral in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75