Fed's Kashkari Says Would Need To See Multiple Readings On Inflation To Be Confident To Cut Rates; In March I Jotted Down Two Rate Cuts For This Year; Possible Will Stay At 2, Or Go To 1 Or 0 Rate Cuts For June, September; We Won't Allow November Election To Affect Our Decisions
Portfolio Pulse from Benzinga Newsdesk
Fed's Kashkari has indicated a cautious approach towards rate cuts, stating the need for multiple inflation readings before feeling confident to cut rates. Initially considering two rate cuts for the year, Kashkari now suggests the possibility of reducing this to one or none, emphasizing that the November election will not influence the Fed's decisions.
May 07, 2024 | 3:40 pm
News sentiment analysis
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Kashkari's cautious stance on rate cuts and the potential reduction in the number of cuts could impact investor sentiment, possibly affecting the SPY ETF.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in interest rate expectations. Kashkari's comments suggest a more cautious Fed, which could lead to mixed reactions in the market. While some investors might see this as a positive sign of the Fed's commitment to fighting inflation, others might be concerned about the impact on economic growth, leading to a neutral short-term impact on SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75