Fed Policymakers See End-2024 PCE Inflation At 2.3% Versus 2.6% In June Projections; Core Seen At 2.6% Versus 2.8%; See 2.0% GDP Growth In 2024 Versus 2.1% In June
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve policymakers have revised their projections for the end of 2024, expecting PCE inflation to be at 2.3%, down from 2.6% in June, and core inflation at 2.6%, down from 2.8%. GDP growth is projected at 2.0%, slightly lower than the previous 2.1% forecast.
September 18, 2024 | 6:08 pm
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POSITIVE IMPACT
The revised Fed projections for lower inflation and GDP growth in 2024 could impact SPY, as it reflects broader market expectations. Lower inflation may ease rate hike concerns, potentially supporting stock prices.
SPY, as an ETF tracking the S&P 500, is sensitive to macroeconomic indicators. The Fed's lower inflation projections may reduce the likelihood of aggressive rate hikes, which is generally positive for equities. The slight downgrade in GDP growth is less impactful in the short term compared to the inflation outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80