Fed's Powell Says To Hike Rates, We'd Have To See Evidence That Policy Isn't Sufficient To Bring Inflation Back Down To Our Goal; Unlikely That Next Policy Rate Move Would Be A Hike; We Are Focused On How Long To Keep Policy Restrictive
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that future rate hikes would require evidence that current policies are insufficient to reduce inflation to the target level. He suggested that the next policy move is unlikely to be a rate hike, emphasizing the focus on maintaining restrictive policy for an appropriate duration.
May 01, 2024 | 6:42 pm
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POSITIVE IMPACT
Powell's comments suggest a cautious approach to rate hikes, potentially stabilizing market conditions and benefiting SPY in the short term.
Powell's remarks imply a continuation of the current monetary policy stance, which could reduce market volatility and support equity prices, including those represented by SPY. The emphasis on evidence before further rate hikes may reassure investors about the predictability of monetary policy, potentially leading to positive sentiment in the stock market.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90