Fed Chair Powell Says These Inflation Dynamics Can Continue; We Don't Know If We Are Down To Demand Determining Inflation; We Think Policy Is Restrictive And Ultimately, Eventually You Will See Weakening In Economy; No One Has Rate Hikes As Base Case; We Have Been Getting Good Progress On Inflation With Strong Labor Market And Growth At Good Level; We Are Seeing What We Wanted To See In The Economy Right Now
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that current inflation dynamics can persist, and it's uncertain if demand is the main factor. He believes the policy is restrictive and will eventually weaken the economy. Despite no rate hikes being the base case, progress on inflation is noted alongside a strong labor market and good growth levels.
June 12, 2024 | 6:58 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments suggest that while inflation is being managed, the restrictive policy may eventually weaken the economy. This could lead to short-term volatility in SPY.
Powell's comments indicate a balance between managing inflation and potential economic weakening. This mixed outlook could result in short-term volatility for SPY as investors react to the nuanced economic signals.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80