Fed's Powell Says When We Get Confidence On Inflation, Rate Cuts Will Be In Scope
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that rate cuts could be considered once there is confidence in inflation control. This statement suggests a potential shift in the Fed's monetary policy stance, which has been focused on combating inflation through rate hikes. The timing of such rate cuts will depend on the Fed's assessment of inflation trends.
May 01, 2024 | 6:50 pm
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POSITIVE IMPACT
Jerome Powell's statement on potential rate cuts upon achieving inflation confidence could positively impact the SPDR S&P 500 ETF Trust (SPY) as it suggests a more accommodative monetary policy in the future.
The SPDR S&P 500 ETF Trust (SPY) often reacts to changes in monetary policy expectations. Powell's comments may lead investors to anticipate a more supportive environment for equity markets, as lower interest rates can boost economic growth and corporate earnings, thereby potentially lifting the SPY.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90