Fed Chair Powell Says Reserves Are Still Abundant, Expected To Remain So For Some Time; Asked About Balance Sheet, Says Reserves Are Stable And Abundant, Expected To Remain There For Some Time; We Are Not Thinking About Stopping Runoff Because Of This At All; We Are Not Planning To Stop Run Off Any Time Soon; Both Balance Sheet And Policy Rate Moves Are A Form Of Normalization
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell stated that reserves are currently abundant and are expected to remain so for some time. He emphasized that the Fed is not considering stopping the runoff of its balance sheet, indicating that both balance sheet adjustments and policy rate changes are part of the normalization process.
September 18, 2024 | 6:50 pm
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NEUTRAL IMPACT
The Federal Reserve's decision to continue the runoff of its balance sheet and maintain abundant reserves suggests a steady approach to monetary policy normalization. This could impact SPY as it reflects broader market conditions.
The SPY ETF, which tracks the S&P 500, could be influenced by the Fed's monetary policy decisions. The continuation of balance sheet runoff and stable reserves suggest a steady normalization process, which may lead to stable market conditions in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50