Fed Chair Powell Says Services Inflation Is Usually Stickier; Wage Increases Moving Back Down Towards More Sustainable Levels; Wage Increases Still Above Where They Will Wind Up In Equilibrium; Labor Market Cooling Off
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell stated that services inflation tends to be more persistent, but wage increases are moving towards sustainable levels. He noted that wage increases are still above equilibrium and the labor market is cooling off.
July 02, 2024 | 1:48 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Fed Chair Powell's comments on persistent services inflation and a cooling labor market could impact SPY. While wage increases are moving towards sustainable levels, they are still above equilibrium, indicating potential volatility in the market.
Powell's comments suggest mixed signals for the market. Persistent services inflation could be a concern, but the cooling labor market and wage adjustments towards sustainable levels might balance the impact. This could lead to short-term volatility in SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50