Fed's Cook Says There Are Challenges Measuring Housing Inflation; Defensible To Include Owners Equivalent Rent In CPI; There's Been Long Standing Shortage Of Housing; Fed Watching Unemployment Rate, But It's Still At Low Level; Fed Has 'Tools To Adjust' If There's Unexpected Shift In Unemployment; Ample Evidence Monetary Policy Is Restrictive; Lags In Monetary Policy Are Real, But Fed Is Also Looking Forward
Portfolio Pulse from Benzinga Newsdesk
Fed's Cook discusses challenges in measuring housing inflation, supports including Owners Equivalent Rent in CPI, and notes a long-standing housing shortage. The Fed is monitoring the unemployment rate, which remains low, and has tools to adjust if needed. Monetary policy is currently restrictive, and the Fed acknowledges real lags but is also forward-looking.
June 25, 2024 | 4:33 pm
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Fed's Cook highlights challenges in measuring housing inflation and supports including Owners Equivalent Rent in CPI. The Fed is monitoring the unemployment rate and has tools to adjust if needed. Monetary policy remains restrictive.
The news indicates that the Fed is aware of the challenges in measuring housing inflation and is taking a cautious approach. This suggests a steady hand on monetary policy, which is already restrictive. The impact on SPY is neutral in the short term as the Fed's stance is largely unchanged.
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IMPORTANCE 70
RELEVANCE 50