Atlanta Fed's Bostic Says Inflation Moving In 'right Direction,' Interest Rate Cut Likely In Q4; Penciled In Four Quarter-Percentage-Point Rate Cuts For 2025, Fed Is 'On A Long Term Arc'; He Wants To Be 'Absolutely Certain' Inflation Will Return To 2% Before An Initial Cut That Should Be Seen As The First In A Series; That Is A Reason For Patience
Portfolio Pulse from Benzinga Newsdesk
Atlanta Fed's Bostic indicates that inflation is moving in the right direction and suggests a potential interest rate cut in Q4. He has penciled in four quarter-percentage-point rate cuts for 2025, emphasizing the need for patience and certainty that inflation will return to 2% before initiating cuts.
June 27, 2024 | 2:01 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF (SPY) may see positive short-term impacts due to the potential interest rate cut in Q4 as indicated by Atlanta Fed's Bostic. Lower interest rates generally boost stock market performance.
Interest rate cuts typically lead to lower borrowing costs and increased investment in equities. Bostic's comments suggest a favorable environment for stocks, which could positively impact SPY.
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IMPORTANCE 70
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