Fed's Goolsbee Says Fed Doesn't Need Annual Inflation To Hit 2% Before Rate Cut; Affirms 2% Inflation Target As A 'Sacred Vow'
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Goolsbee stated that the Fed does not need annual inflation to hit 2% before considering a rate cut, although the 2% inflation target remains a 'sacred vow'.
June 20, 2024 | 8:29 pm
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POSITIVE IMPACT
The Federal Reserve's stance on not requiring inflation to hit 2% before a rate cut could positively impact SPY, as it suggests potential easing of monetary policy sooner than expected.
The SPY ETF, which tracks the S&P 500, is likely to benefit from the Fed's indication of potential rate cuts without waiting for inflation to hit 2%. This could lead to a more favorable economic environment for equities.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50