Fed's Daly Says Have Made A Lot Of Progress On Inflation, Still Work To Do; Inflation Is Not The Only Risk; Nearer To A Point Where Benign Outcome On Labor Market Could Be Less Likely; Policy Has To Be Conditional; Need To Exhibit Care; If Inflation Falls More Slowly Than Expected, Policy Rate Must Stay Higher For Longer; If Inflation Falls Rapidly Or Labor Market Softens More Than Expected, Lowering Policy Rate Would Be Necessary
Portfolio Pulse from Benzinga Newsdesk
Fed's Daly indicates significant progress on inflation but emphasizes that more work is needed. She highlights the conditional nature of policy, suggesting that if inflation falls slowly, rates will stay high longer, but if inflation drops quickly or the labor market weakens, rates may be lowered.
June 24, 2024 | 6:01 pm
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Fed's Daly's comments suggest a conditional approach to interest rates, which could impact the broader market. If inflation falls slowly, higher rates could pressure SPY, but if inflation drops quickly or the labor market weakens, lower rates could boost SPY.
The conditional nature of Fed's policy as described by Daly means that SPY could experience volatility. Higher rates could pressure the ETF, while lower rates could provide a boost. The exact impact will depend on future inflation and labor market data.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50