Fed Chair Powell Says Path Ahead Is Going To Depend On Economy; I Can Imagine Scenario Where There Is Everything From Zero Cuts To Several Cuts; I Can Imagine A Scenario Of Zero Cuts To Several Cuts This Year, Depending On How Economy Evolves; Data In Labor Market Shows Gradual Normalization; We Are Back To A Closer Than Even Focus On Jobs Vs Inflation Goals; We Are Back To Closer To Even Focus On Two Mandates
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that the future path of interest rates will depend on economic conditions, with scenarios ranging from zero to several rate cuts this year. He noted that the labor market is gradually normalizing and that the Fed is balancing its focus between job growth and inflation control.
July 31, 2024 | 6:43 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on potential rate cuts and economic conditions could lead to increased volatility in SPY, as investors react to the uncertainty in monetary policy.
SPY, as an ETF that tracks the S&P 500, is sensitive to changes in monetary policy. Powell's comments introduce uncertainty regarding future rate cuts, which could lead to short-term volatility as investors adjust their expectations.
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