Fed Chair Powell Says We Are Going To Move Rates To A More Normal Level Over Time; We Are Not Declaring Victory On Inflation; We Are Close, But Not At 2% Inflation; We Are Not Saying Mission Accomplished Yet On Inflation, But Encouraged By Our Progress
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell stated that interest rates will be adjusted to a more normal level over time. While progress has been made, the Fed is not declaring victory on inflation, which is close but not yet at the 2% target.
September 18, 2024 | 7:05 pm
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NEUTRAL IMPACT
The Federal Reserve's plan to gradually normalize interest rates could impact SPY, as it reflects broader market expectations. While inflation is nearing the target, the Fed's cautious approach suggests potential volatility.
SPY, as an ETF tracking the S&P 500, is sensitive to interest rate changes. The Fed's indication of a gradual rate normalization suggests a stable approach, but the lack of a clear victory on inflation could lead to market uncertainty, affecting SPY's short-term performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80