Fed's Powell Says Rise In Unemployment Would Have To Be Meaningful For Us To React; It Would Have To Be Broader Thing That Would Suggest It Would Be Appropriate To Consider Cutting Rates
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell indicated that a significant rise in unemployment would be required before the Fed considers cutting rates. He emphasized that the increase would need to be part of a broader economic downturn to warrant such action.
May 01, 2024 | 7:16 pm
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NEUTRAL IMPACT
Powell's comments suggest a cautious approach to rate cuts, potentially impacting market sentiment and the performance of the SPDR S&P 500 ETF Trust (SPY).
Jerome Powell's remarks imply that the Federal Reserve is not in a hurry to cut rates, which could lead to mixed reactions in the stock market. As SPY tracks the performance of the S&P 500, any changes in market sentiment due to monetary policy expectations can influence its price. However, the impact is considered neutral in the short term as the market digests the implications of Powell's stance on employment and rate cuts.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75