Fed's Waller Says Time To Cut Policy Rate Is Getting Closer; Optimistic Scenario: Good Inflation Data May Lead To Rate Cut Soon; Uneven Inflation Data Ahead Makes Rate Cut Uncertain; Low Probability Of Significant Inflation Resurgence In Second Half Of Year; U.S. Central Bank Getting Closer To Policy Rate Cut; Current Data Consistent With 'Soft Landing' And Less Unemployment Trade-Off
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Governor Christopher Waller indicated that the time to cut the policy rate is approaching, driven by positive inflation data. However, uneven inflation data could make the timing of the rate cut uncertain. Waller also noted a low probability of significant inflation resurgence in the second half of the year, and current data suggests a 'soft landing' with less unemployment trade-off.
July 17, 2024 | 1:36 pm
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The Federal Reserve's indication of a potential rate cut could positively impact SPY, as lower interest rates generally boost stock prices. However, the uncertainty due to uneven inflation data may introduce some volatility.
A potential rate cut by the Federal Reserve is typically positive for stock markets, including SPY, as it lowers borrowing costs and can stimulate economic activity. However, the uncertainty due to uneven inflation data could lead to short-term volatility.
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