Fed Chair Powell Says Upside Risks To Inflation Have Decreased; Downside Risks To Employment Mandate Are Real Now; Policy Rate Is Clearly Restrictive; Time Approaching to Start Rate Cuts; Time Coming When It Will Be Appropriate To Dial Back Restriction; 'Lot Of Data Between Now And September'
Portfolio Pulse from Benzinga Newsdesk
Fed Chair Powell indicated that the upside risks to inflation have decreased, while downside risks to the employment mandate are now real. He mentioned that the policy rate is clearly restrictive and the time to start rate cuts is approaching. Powell also noted that it will soon be appropriate to dial back restrictions, with a lot of data expected between now and September.
July 31, 2024 | 6:54 pm
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POSITIVE IMPACT
Fed Chair Powell's comments suggest that the Federal Reserve may soon start cutting interest rates as inflation risks decrease and employment risks rise. This could positively impact the SPY ETF in the short term.
The SPY ETF, which tracks the S&P 500, is likely to benefit from potential rate cuts as lower interest rates generally boost stock prices. Powell's comments indicate a shift towards a more accommodative monetary policy, which is positive for equities.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80