Fed's Mester Says If There Is Unforseen Deterioriation On Realside Of Economy, Can Cut Rates; Can Hold Rates, Or Even Raise Them, If Inflation, Against Expectations Stalls Out Or Reverses; We Have To Be Careful In Monitoring The Economy
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Mester stated that the Fed could cut rates if there is an unforeseen deterioration in the real economy. Conversely, if inflation stalls or reverses, the Fed may hold or even raise rates. Mester emphasized the need for careful monitoring of the economy.
May 20, 2024 | 6:11 pm
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NEUTRAL IMPACT
The Federal Reserve's potential actions on interest rates, as discussed by Mester, could significantly impact SPY. Rate cuts may boost SPY, while rate hikes could pressure it.
SPY, as an ETF that tracks the S&P 500, is sensitive to Federal Reserve policies. Rate cuts typically boost equities, while rate hikes can have the opposite effect. Mester's comments suggest potential volatility depending on economic conditions.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80