Fed Chair Powell Says My Own Sense Is We Are Not Going Back To Negative Rates For Long-term Bonds; It Feels Neutral Rate Is Higher Than It Was; It Feels To Me That Neutral Rate Is Probably Significantly Higher Than It Was Pre Pandemic; Asked About Election, Says Fed Makes Decisions Based On Its Service To American People; Our Decisions Are Never About Politics Or Anything Else; If We Get It Right, Will Benefit The American People
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell indicated that the neutral interest rate is likely higher than pre-pandemic levels and dismissed the possibility of returning to negative rates for long-term bonds. He emphasized that the Fed's decisions are based on serving the American people, not politics.
September 18, 2024 | 7:02 pm
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NEUTRAL IMPACT
Fed Chair Powell's comments on higher neutral rates and no return to negative rates could impact SPY, as these factors influence bond yields and stock market valuations.
SPY, an ETF tracking the S&P 500, could be influenced by Powell's comments as higher neutral rates may lead to higher bond yields, affecting stock valuations. However, the direct impact is uncertain as it depends on market interpretation and other economic factors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50