Fed's Powell Says If Higher Inflation Persists Fed Can Maintain Current Rate As Long As Needed; Says Restrictive Policy Needs Further Time To Work
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that if higher inflation continues, the Federal Reserve is prepared to maintain the current interest rate for as long as necessary. He emphasized that the restrictive policy requires more time to have its intended effect.
April 16, 2024 | 5:33 pm
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NEUTRAL IMPACT
The statement by Fed Chair Powell suggests a cautious approach towards managing inflation, which could lead to sustained higher interest rates. This may impact investor sentiment and market volatility, potentially affecting the SPY ETF.
Powell's comments imply a readiness to maintain higher interest rates to combat inflation, which can influence investor expectations and market dynamics. Given SPY's broad market exposure, shifts in monetary policy perception can lead to increased volatility or cautious trading, affecting its short-term performance.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 75