Fed's Williams Says Path Of Fed Rate Cuts Will Be Driven By Data; Impact Of Quantitative Tightening Already Built Into Markets; Quantitative Tightening Not Interfering With Monetary Policy Aims; Primary Fed Policy Tool Is Fed Fund Rate, Has Plenty Of Space To Work With
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's John Williams stated that future rate cuts will be data-driven, and the effects of quantitative tightening are already reflected in the markets. He emphasized that quantitative tightening is not hindering monetary policy goals, and the primary tool remains the Fed Fund Rate.
September 06, 2024 | 1:48 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility as the Federal Reserve's future rate cuts will be data-driven, and the impact of quantitative tightening is already priced in. The Fed Fund Rate remains the primary tool, indicating potential stability.
The SPY ETF, which tracks the S&P 500, could see short-term volatility due to the Fed's data-driven approach to rate cuts. However, since the impact of quantitative tightening is already priced in, the overall effect may be neutral. The Fed's emphasis on the Fed Fund Rate as the primary tool suggests a stable policy environment, which could mitigate drastic movements in SPY.
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IMPORTANCE 60
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