FOMC Repeats No Rate Cuts Until Inflation Moves Sustainably Toward 2%
Portfolio Pulse from Benzinga Newsdesk
The Federal Open Market Committee (FOMC) has reiterated its stance that there will be no rate cuts until inflation is sustainably moving towards the 2% target. This decision underscores the committee's commitment to stabilizing prices and suggests a cautious approach towards monetary policy amidst ongoing inflation concerns.

May 01, 2024 | 6:01 pm
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NEUTRAL IMPACT
The FOMC's decision to hold off on rate cuts until inflation approaches the 2% target could lead to mixed reactions in the market, potentially affecting the SPDR S&P 500 ETF Trust (SPY) as it reflects broader market sentiment.
The FOMC's decision directly influences interest rates, which in turn affect the stock market. A decision against rate cuts could signal a longer period of high-interest rates, potentially slowing economic growth. However, the commitment to fighting inflation could also reassure investors about long-term economic stability. The SPY, being a broad market ETF, is likely to reflect these mixed investor sentiments, leading to a neutral short-term impact.
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