Fed's Kugler Says It Will Be Appropriate To Begin Easing Monetary Policy Later This Year If Economic Conditions Continue To Evolve Favorably; Upside Risks To Inflation, Downside Risks To Employment Have Become More Balanced; If Labor Market Cools Too Much, It Will Be Appropriate To Cut Interest Rates 'Sooner Rather Than Later'; If Incoming Data Don't Provide Confidence That Inflation Is Moving Toward 2% Target, It May Be Appropriate To Hold Rates Steady 'A Little Longer'
Portfolio Pulse from Benzinga Newsdesk
Fed's Kugler suggests that easing monetary policy later this year may be appropriate if economic conditions remain favorable. He notes that risks to inflation and employment have become more balanced. If the labor market cools significantly, interest rate cuts may happen sooner. However, if inflation data does not show progress towards the 2% target, rates may be held steady longer.
July 16, 2024 | 6:46 pm
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Fed's Kugler indicates potential easing of monetary policy later this year if economic conditions remain favorable. Balanced risks to inflation and employment could lead to interest rate cuts if the labor market cools significantly.
The potential easing of monetary policy and balanced risks to inflation and employment suggest a favorable environment for equities. If the labor market cools significantly, interest rate cuts could boost market sentiment, positively impacting SPY.
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