Fed Chair Powell Says It's A Question Of Keeping Policy At The Current Rate For Longer; The Policy Rate Is Restrictive; Time Will Tell If We Are Sufficiently Restrictive On Policy; Don't Think It's Likely That The Next Move Would Be A Rate Hike
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that maintaining the current policy rate for an extended period is under consideration, acknowledging the rate's restrictive nature. He expressed uncertainty about whether the current policy is sufficiently restrictive and deemed a rate hike in the near future as unlikely.
May 14, 2024 | 2:19 pm
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POSITIVE IMPACT
Powell's comments on potentially maintaining the current policy rate for a longer period and the unlikelihood of a rate hike may lead to a positive sentiment among investors, potentially boosting the SPY ETF as it reflects the broader market sentiment.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in Federal Reserve policies. Powell's indication of maintaining the current policy rate and the low likelihood of a rate hike could reduce market volatility and increase investor confidence, leading to potential gains for SPY.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90