Fed Chair Powell Says Restrictive Monetary Policy Has Helped Restore Supply And Demand Balance; Our Patient Approach Has Paid Dividends; Inflation Is Much Closer To Our Goal; Upside Risks To Inflation Have Diminished And Downside Risks To Labor Market Have Risen; We Are Attentive To Risks On Boths Sides Of Mandate; On Balance Of Risks, We Cut Rates By 50 Bps Today
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Powell announced a 50 basis point rate cut, citing a more balanced supply and demand, reduced inflation risks, and increased labor market risks. The Fed's patient approach has been effective, bringing inflation closer to its target.
September 18, 2024 | 6:36 pm
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The Federal Reserve's decision to cut interest rates by 50 basis points is likely to positively impact the SPY ETF, as lower rates generally boost stock market performance.
The SPY ETF, which tracks the S&P 500, is likely to benefit from the Fed's rate cut as lower interest rates typically encourage investment in equities. This move suggests a more favorable environment for stocks, potentially driving SPY's price up.
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