Fed's Bostic Says Inflation Is Too High; We Still Have A Ways To Go On Inflation; Pathway To 2% Inflation Will Be Slower Than People Expect, And Bumpy; Inflation Is Going Where We Want It To Go, But It's Slow; I'm Not In A Mad Dash Hurry To Get There; If We Can Keep Jobs, Wages Going And Inflation Is Moving To Target, We Can Stay Where We Are On Rates
Portfolio Pulse from Benzinga Newsdesk
Fed's Bostic expressed that inflation remains high and the journey to achieving a 2% inflation target is expected to be slower and more turbulent than anticipated. Despite the slow progress, Bostic is not in a rush to reach the target, emphasizing the importance of maintaining job growth and wage increases. He suggests that if these conditions are met and inflation continues to move towards the target, there may be no immediate need to adjust current interest rates.
April 18, 2024 | 4:08 pm
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POSITIVE IMPACT
Bostic's comments suggest a cautious approach to rate hikes, potentially easing fears of aggressive monetary tightening. This could support market sentiment and stabilize or positively impact SPY in the short term.
Bostic's remarks indicate a slower, more deliberate path to interest rate adjustments, focusing on economic stability over rapid inflation targeting. This approach can calm markets, as it suggests the Fed is mindful of not disrupting economic growth or job creation, which is positive for the broad market and ETFs like SPY that track the overall market performance.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80