Fed Chair Powell Says More Likely That We Would Hold Policy Rate Where It Is; Housing Inflation Has Been A Bit Of A Puzzle; Current Rent Increases Have Been Low For Some Time, Not Showing Up In Rollover Leases; Lags Between Decline In Market Rates And It Showing Up Are Longer Than We Though; It Should Show Up, Just A Question Of When; Non-Housing Services Inflation Is The One That May Take The Longest; I Am Confident We Will Get There Though
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated a likelihood of maintaining the current policy rate, citing housing inflation as puzzling and noting that current rent increases are low. He mentioned delays in the impact of declining market rates on housing and suggested that non-housing services inflation might take the longest to adjust.
May 14, 2024 | 2:20 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Powell's comments on maintaining the current policy rate and the complexities of housing inflation may lead to a neutral to slightly positive impact on SPY, reflecting market stability and continued support for economic growth.
The SPY ETF, which tracks the S&P 500, is sensitive to Federal Reserve policies. Powell's indication of maintaining the policy rate suggests a stable economic environment, which is generally positive for equity markets. However, the uncertainty around housing inflation and its impact on overall inflation may temper gains.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75