Fed's Goolsbee Confident With Inflation's 'Golden Path,' But Won't Tie Committee Hands On September Fed Cut: Stocks Fall
Portfolio Pulse from Piero Cingari
Chicago Fed President Austan Goolsbee expressed confidence in the declining inflation trend but refrained from committing to a September rate cut. Despite his optimistic outlook, the U.S. stock market experienced a decline, with major indices and ETFs like SPY and QQQ falling.
July 18, 2024 | 4:28 pm
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The Invesco QQQ Trust (QQQ) also declined by 0.1% as the market reacted to Goolsbee's cautious stance on future rate cuts.
Similar to SPY, QQQ saw a decline due to investor uncertainty stemming from Goolsbee's non-committal stance on rate cuts.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell by 0.1% following Goolsbee's remarks, as investors reacted to the lack of commitment on a September rate cut.
The lack of a clear commitment to a rate cut in September led to uncertainty among investors, causing a decline in SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) saw a slight increase of 0.28%, maintaining its session gains despite Goolsbee's remarks.
UUP's slight increase indicates investor confidence in the dollar, even as Goolsbee refrained from committing to a rate cut.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60