Fed Chair Powell Says This Is How We Balance Them; Labor Market Is In Process Of Ongoing Normalization; We'll Just Have To See What Data Show Us; Today's ECI Reading Was A Little Softer Than Expected; Data We Have Been Seeing In Labor Market Has Been Consistent With Normalization Process; We Don't Need To Be 100% Focused On Inflation; Job Is Not Done On Inflation, But Can Afford To Begin To Dial Back Restriction In Policy Rate; In A Base Case You Would Think Policy Rates Would Move Down From Here
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell discussed the ongoing normalization of the labor market and indicated that policy rates might move down from current levels. He noted that today's ECI reading was softer than expected and that the data aligns with the normalization process. Powell emphasized that while the job on inflation is not done, the Fed can begin to dial back restrictions in policy rates.
July 31, 2024 | 6:49 pm
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POSITIVE IMPACT
Fed Chair Powell's comments suggest a potential easing of policy rates, which could positively impact the SPY ETF in the short term as lower rates generally boost stock prices.
Powell's indication that policy rates might move down is likely to be seen as a positive signal for the stock market. Lower interest rates generally lead to higher stock prices, benefiting broad market ETFs like SPY.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80