Fed's Cook Says R-star Not Key For Real Time Fed Decision Making
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Governor Lisa Cook stated that the neutral interest rate, or R-star, is not a key factor for real-time decision-making by the Fed. This suggests that the Fed may rely on other economic indicators for policy decisions.
June 25, 2024 | 4:44 pm
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The statement by Fed Governor Lisa Cook that R-star is not crucial for real-time decision-making suggests that the Federal Reserve may focus on other economic indicators. This could lead to increased market uncertainty as investors try to predict the Fed's next moves.
The Fed's shift away from R-star as a key decision-making factor could lead to increased market volatility as investors adjust their expectations based on other economic indicators. However, the overall impact on SPY is neutral in the short term as the market digests this information.
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