Fed's Powell Says We Believe Over Time Policy Is Sufficiently Restrictive To Bring Inflation Back Down To 2%; The Data Will Show If That's So; Commmitted To Retaining Restrictive Stance Of Policy For As Long As Appropriate
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that the current restrictive monetary policy is believed to be sufficient over time to reduce inflation back to the 2% target. The effectiveness of this policy will be determined by future data, and the Fed is committed to maintaining this stance for as long as necessary.

May 01, 2024 | 6:41 pm
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NEUTRAL IMPACT
Powell's comments on maintaining a restrictive policy stance to combat inflation may influence investor sentiment and market volatility, potentially impacting SPY.
Powell's remarks suggest a continuation of the current monetary policy, which can lead to mixed reactions in the stock market. While some investors might view this as a positive step towards stabilizing inflation, others may be concerned about the impact on economic growth. SPY, as a broad market ETF, is likely to reflect these mixed sentiments, leading to potential short-term volatility but no clear direction in price movement.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75