Fed Minutes: Participants Noted Recent Data Had Not Increased Confidence In Progress Toward 2% Inflation Goal And Suggested Disinflation Process Would Take Longer Than Previously Thought
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve's minutes reveal that participants are not confident in recent data showing progress toward the 2% inflation goal. They suggest that the disinflation process will take longer than previously anticipated.
May 22, 2024 | 6:02 pm
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The Federal Reserve's minutes indicate that the disinflation process will take longer than previously thought, which could lead to prolonged higher interest rates. This may negatively impact the SPY ETF in the short term as investors adjust their expectations.
The Federal Reserve's indication that disinflation will take longer suggests that interest rates may remain higher for an extended period. Higher interest rates generally lead to lower stock prices, which could negatively impact the SPY ETF.
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IMPORTANCE 90
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