Fed's Waller Says In Terms Of 25 Bps Vs 50 Bps, My Speech Two Weeks Ago Said 25 Bps A Good Idea But Open To 50; Then Inflation Data During Blackout Pushed Me To 50 Bps Cut; Estimate That August PCE Will Be Very Low; Core PCE Is Running Below Our Target On A 4-Month Average Annualized Basis
Portfolio Pulse from Benzinga Newsdesk
Fed's Waller initially supported a 25 basis point rate cut but shifted to 50 basis points after recent inflation data. He estimates August PCE to be low, with core PCE running below target on a 4-month average annualized basis.
September 20, 2024 | 3:34 pm
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POSITIVE IMPACT
The shift in Fed's Waller stance from a 25 bps to a 50 bps rate cut could impact SPY as it reflects broader market expectations on interest rates and inflation.
SPY, as an ETF tracking the S&P 500, is sensitive to interest rate changes. A shift to a 50 bps cut suggests a more aggressive stance to counter low inflation, potentially boosting equities.
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IMPORTANCE 70
RELEVANCE 80