Fed's Powell Says People Don't Experience Interest-rate Increases As Pleasant, But At The End, You Get Inflation Down
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell stated that while interest rate hikes are not pleasant for people, they are necessary to bring down inflation. This statement highlights the Fed's commitment to controlling inflation, which may impact market sentiment and interest rate-sensitive assets.
September 18, 2024 | 7:11 pm
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The statement by Fed Chair Powell about the necessity of interest rate hikes to control inflation could impact SPY, as it reflects the Fed's ongoing commitment to monetary tightening, which may affect market sentiment and stock prices.
SPY, as an ETF that tracks the S&P 500, is sensitive to changes in interest rates. Powell's comments suggest continued rate hikes, which can lead to higher borrowing costs and potentially lower stock prices, negatively impacting SPY in the short term.
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