Fed's Waller Says Real Return On Capital Not Suitable For Gauging Neutral Rate; Real 10-Year Treasury Yield Is A Good Proxy For Neutral Rate; Need Humility In Citing Numerical Value Of Neutral Rate
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Governor Christopher Waller stated that the real return on capital is not suitable for gauging the neutral rate. Instead, he suggested that the real 10-year Treasury yield is a good proxy for the neutral rate. Waller emphasized the need for humility when citing numerical values for the neutral rate.
May 24, 2024 | 1:24 pm
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NEUTRAL IMPACT
Federal Reserve Governor Christopher Waller's comments on the neutral rate and the real 10-year Treasury yield could impact market sentiment and the SPY ETF, which tracks the S&P 500. His emphasis on humility in citing numerical values may lead to increased market uncertainty.
Waller's comments on the neutral rate and the real 10-year Treasury yield could influence investor sentiment and market expectations, which in turn could affect the SPY ETF. However, the impact is likely to be neutral in the short term as it primarily introduces a new perspective rather than a direct policy change.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50