Fed's Kashkari Says U.S. Has Long Term Housing Supply Challenge; Higher Rates Will Lead To Less Housing Supply In Short Term; Fed Has To Get Inflation Down
Portfolio Pulse from Benzinga Newsdesk
Fed's Kashkari highlights a long-term housing supply challenge in the U.S., noting that higher interest rates will likely reduce housing supply in the short term as the Fed focuses on reducing inflation.
May 10, 2024 | 2:37 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience volatility as the Fed's actions to combat inflation through higher rates could impact economic growth and housing market dynamics, influencing investor sentiment.
While the SPDR S&P 500 ETF Trust (SPY) is not directly linked to the housing market, the Fed's monetary policy and its impact on inflation and economic growth are crucial for overall market sentiment. Higher interest rates can slow down economic growth and affect various sectors, potentially leading to increased market volatility. However, the direct impact on SPY is moderated by its diversified nature, covering multiple sectors beyond real estate.
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