Fed Chair Powell, Asked If Inflation Will Prove More Persistent, Says Fed Doesn't Know Yet; Firms Still Report Labor Shortages; Restrictive Policy May Take Longer Than Expected To Do Its Work, Bring Inflation Down; We Will Get Inflation Down To 2%
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell acknowledges uncertainty about the persistence of inflation, noting ongoing labor shortages and the possibility that restrictive monetary policy may need more time to effectively reduce inflation. However, he remains committed to bringing inflation down to the Fed's 2% target.
May 14, 2024 | 2:17 pm
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NEUTRAL IMPACT
Powell's comments on inflation and policy effectiveness may lead to increased market volatility, impacting SPY as it reflects the broader market sentiment.
Powell's acknowledgment of the uncertainty surrounding inflation and the effectiveness of restrictive policies could lead to market volatility. As SPY tracks the performance of the S&P 500, it is directly impacted by changes in market sentiment and economic outlook. The uncertainty might lead to cautious trading, affecting SPY's short-term movements.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75