Fed's Williams Says Expect To Squarely Hit 2% Inflation In Early 2026; Rate Hikes Are Not Baseline Forecast; Fed Will Take Whatever Action Needed To Lower Inflation
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's John Williams stated that the Fed expects to achieve a 2% inflation target by early 2026. He mentioned that rate hikes are not the baseline forecast but emphasized that the Fed will take necessary actions to lower inflation.
May 30, 2024 | 4:37 pm
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The Federal Reserve's expectation to hit a 2% inflation target by early 2026 and the indication that rate hikes are not the baseline forecast could stabilize market sentiment. However, the Fed's readiness to take necessary actions to lower inflation may introduce some uncertainty.
The Fed's projection of achieving the 2% inflation target by early 2026 suggests a long-term stabilization, which could be positive for SPY. However, the Fed's readiness to act against inflation introduces uncertainty, balancing the short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50