Fed Chair Powell Says We Are Practicing A Slight Element Of Conservatism On Our Inflation Outlook; We Don't Have High Confidence In Forecasts; We Welcome Today's Inflation Reading, Hope For More Like That; The Test For Cutting Rates Is More Confidence That Inflation Is Moving Toward 2%; We Have A Fairly Conservative Forecast On Inflation, If We Get Better Readings, I Think We Will See Forecast Come Down
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that the Federal Reserve is practicing a conservative approach to its inflation outlook and does not have high confidence in its forecasts. He welcomed the current inflation reading and expressed hope for more similar readings. Powell mentioned that the test for cutting rates would be more confidence that inflation is moving toward 2%.
June 12, 2024 | 6:41 pm
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NEUTRAL IMPACT
Fed Chair Powell's conservative stance on inflation and the conditional approach to rate cuts could lead to short-term market stability. SPY may see limited volatility as investors digest the cautious outlook.
Powell's comments suggest a cautious approach to inflation and rate cuts, which may lead to limited market volatility. SPY, representing the S&P 500, could see stability as investors process this outlook.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50