Fed's Waller Says Demographics Will Continue To Lower Neutral Rate; Demand For U.S. Safe, Liquid Assets Has Pushed Down Treasury Yields And Neutral Rate; U.S. Dollar Remains Leading World Reserve Currency; Recent Events Suggest Increased Influence For Dollar
Portfolio Pulse from Benzinga Newsdesk
Fed's Waller indicates that demographic trends will continue to lower the neutral rate. The demand for U.S. safe, liquid assets has pushed down Treasury yields and the neutral rate. The U.S. dollar remains the leading world reserve currency, with recent events suggesting increased influence for the dollar.
May 24, 2024 | 1:26 pm
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The demand for U.S. safe, liquid assets has pushed down Treasury yields and the neutral rate, which could impact SPY as it reflects the broader market. Lower yields may drive investors towards equities, potentially benefiting SPY.
Lower Treasury yields typically make equities more attractive as investors seek higher returns, which could lead to increased demand for SPY, an ETF that tracks the S&P 500.
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