Fed's Powell Says We Do Not Expect It Will Be Appropriate To Cut Rates Until Have Greater Confidence On Inflation Moving Toward 2%; So Far This Year Inflation Readings Have Not Given Us That Greater Confidence
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that the Federal Reserve does not anticipate cutting rates until there is greater confidence that inflation is moving towards the 2% target. Current inflation readings have not provided this confidence.
May 01, 2024 | 6:37 pm
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NEUTRAL IMPACT
Powell's comments on holding interest rates steady until inflation targets are closer to being met could lead to a cautious outlook for 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, especially those related to interest rates. Powell's remarks suggest a continuation of the current monetary policy stance, which could lead to a neutral short-term impact on the SPY as investors digest the implications for economic growth and inflation.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90