S&P Falls Following Release Of Fed Minutes; Minutes Show Participants Assessed It Would Take Longer Than Expected To Move To 2% Inflation, Some Participants Mentioned Willingness To Tighten Policy Further Should Risks To Inflation Materialize
Portfolio Pulse from Benzinga Newsdesk
The S&P 500 fell after the release of the Federal Reserve's minutes, which indicated that participants believe it will take longer than expected to reach the 2% inflation target. Some participants also expressed a willingness to tighten policy further if inflation risks materialize.
May 22, 2024 | 6:06 pm
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The SPDR S&P 500 ETF (SPY) declined following the release of the Federal Reserve's minutes, which highlighted concerns about prolonged inflation and the possibility of further policy tightening.
The Federal Reserve's minutes indicated that it may take longer to achieve the 2% inflation target and that further policy tightening could occur if inflation risks materialize. This uncertainty and potential for tighter monetary policy negatively impacted the SPY.
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IMPORTANCE 80
RELEVANCE 100