Fed's Goolsbee Says We Need To Pay Attention To That Side Of The Mandate Too; If We Keep Making Progress On Inflation, And The Rates Can Come Down, We May Avoid Recession; As European Countries Cut Rates, That Could Push Up Dollar
Portfolio Pulse from Benzinga Newsdesk
Fed's Goolsbee emphasized the importance of monitoring inflation and suggested that if progress continues, interest rates could be lowered, potentially avoiding a recession. He also noted that rate cuts in European countries could strengthen the US dollar.
June 14, 2024 | 6:36 pm
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POSITIVE IMPACT
The potential for interest rate cuts by the Fed, as mentioned by Goolsbee, could positively impact SPY by making borrowing cheaper and boosting economic activity, which is generally favorable for the stock market.
Lower interest rates typically lead to increased borrowing and spending, which can boost economic activity and stock prices, benefiting SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
European rate cuts could strengthen the US dollar, potentially making US investments more attractive compared to European ones, which might negatively impact VGK.
A stronger US dollar can make European investments less attractive, potentially leading to a decline in VGK as investors shift to US assets.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70