Kashkari Said Median Projection Is For One Cut, That's Likely To Be Toward End Of The Year; Said We Need To See More Evidence To Convince Us Inflation Is Heading To 2%
Portfolio Pulse from Benzinga Newsdesk
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that the median projection is for one interest rate cut, likely toward the end of the year. He emphasized the need for more evidence to be convinced that inflation is heading towards the 2% target.
June 16, 2024 | 3:25 pm
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POSITIVE IMPACT
The SPDR S&P Homebuilders ETF (XHB) might be influenced by Kashkari's remarks on interest rates, as lower rates could benefit the housing market.
Lower interest rates generally benefit the housing market by making mortgages more affordable, which could positively impact XHB. Kashkari's comments suggest a potential rate cut, leading to a positive outlook for XHB.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility due to Kashkari's comments on potential interest rate cuts and the need for more evidence on inflation trends.
Kashkari's comments on interest rate cuts and inflation directly impact market sentiment, which can lead to short-term volatility in SPY. However, the lack of immediate action keeps the impact neutral.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80