Fed Chair Powell Says We Have No Commitment To A Particular Rate Cut; Everyone Would Say The Rate Path Is Data Dependent; Policymakers Are Not Trying To Send A Strong Signal With Forecasts; We Need Further Confidence, More Good Inflation Readings But Won't Be Specific About How Many To Start Rate Cuts; We Want To Gain Further Confidence On Rates, Not Going To Say How Many More Months Of Good Data Is Needed
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that there is no commitment to a particular rate cut and that the rate path is data dependent. Policymakers are not trying to send a strong signal with forecasts and need further confidence and more good inflation readings before starting rate cuts. Powell did not specify how many months of good data are needed.
June 12, 2024 | 6:44 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on the data-dependent rate path and the need for more good inflation readings before rate cuts could lead to short-term uncertainty in the market, affecting SPY.
Powell's remarks suggest that the Fed is cautious about committing to rate cuts without more positive inflation data. This uncertainty can lead to market volatility, impacting SPY in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80