Fed's Waller Says Inflation Is Softening Much Faster Than I Thought It Was Going To; That Made Me Support 50 Bps Cut; Asked About Pace Of Cuts, Says He Several Scenarios That Will Determine Pace, Will Depend On Data; Could Imagine Going 25 At The Next Meeting Or Two; If Data Comes In Fine, You Could Imagine Going 25 Next Meeting Or Two; But If Labor Market Worsens And Inflation Data Softens Quicker, We Could Do More
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Waller suggests that inflation is softening faster than expected, supporting a potential 50 basis points rate cut. The pace of future cuts will depend on economic data, with possibilities ranging from 25 basis points cuts to more aggressive actions if the labor market worsens and inflation softens further.
September 20, 2024 | 3:36 pm
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The SPDR S&P 500 ETF (SPY) may experience volatility as Fed's Waller suggests faster-than-expected inflation softening, supporting a potential 50 bps rate cut. The pace of cuts will depend on economic data, impacting market sentiment.
The SPY ETF, which tracks the S&P 500, is sensitive to interest rate changes. A potential 50 bps rate cut could boost equities by lowering borrowing costs and encouraging investment. However, the actual impact will depend on forthcoming economic data.
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