Minneapolis Fed President Kashkari Says Most Likely Scenario Is We Stay Put For Extended Period On Rates; If Disinflation Comes Again, Or We Saw Marked Weakening In Job Market That Might Lead To Rate Cuts; We Would Hike Rates If Needed; Raising Rates Is Not Most Likely, But Can't Rule It Out
Portfolio Pulse from Benzinga Newsdesk
Minneapolis Fed President Kashkari stated that the most likely scenario is maintaining current interest rates for an extended period. Rate cuts could occur if disinflation resumes or if there's a significant weakening in the job market. However, rate hikes are not off the table if necessary, although not the most likely outcome.
May 07, 2024 | 3:35 pm
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Kashkari's comments suggest a stable interest rate environment, which could support current equity valuations and potentially benefit SPY in the short term.
Stable or lower interest rates tend to be positive for equities as they reduce the cost of borrowing and can lead to economic growth, which benefits index funds like SPY. Kashkari's remarks decrease the likelihood of rate hikes, which is generally positive for the stock market.
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IMPORTANCE 70
RELEVANCE 80