Fed Cuts Key Overnight Rate By 50 bps
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve has reduced the key overnight interest rate by 50 basis points. This move is likely to impact various financial markets, including equities and commodities.
September 18, 2024 | 6:00 pm
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POSITIVE IMPACT
The Fed's rate cut may lead to a rise in gold prices, benefiting GLD, as lower interest rates can weaken the dollar and increase demand for gold as a safe-haven asset.
Gold often benefits from lower interest rates as they can lead to a weaker dollar and increased demand for gold as a hedge against inflation and economic uncertainty.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Fed's decision to cut the key overnight rate by 50 bps is likely to have a positive impact on the SPY ETF, as lower interest rates generally boost equity markets.
Lower interest rates reduce borrowing costs and can stimulate economic activity, which is generally positive for stock markets. SPY, being a broad market ETF, is likely to benefit from this environment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80