Fed's Goolsbee Sees 'Many More Rate Cuts' Over Next Year; Comfortable With Fed's 50 BPs Rate Cut, Shows Fed Is Focused On Risks To Employment, Not Just Inflation; Inflation Is 'Way Down' From Peak, Labor Market Is At Full Employment; Keeping Rates At Decade-High Does Not Make Sense When You Want Things To Stay Where They Are; To Reach Soft Landing, Cannot Be Behind The Curve; Rates Must Come Down Significantly
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Goolsbee anticipates multiple rate cuts over the next year, emphasizing the Fed's focus on employment risks rather than just inflation. With inflation down from its peak and a strong labor market, maintaining high rates is deemed unnecessary. Significant rate reductions are needed to achieve a soft landing.
September 23, 2024 | 2:14 pm
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The SPDR S&P 500 ETF (SPY) may experience positive impacts due to anticipated rate cuts by the Federal Reserve, as lower rates can boost stock market performance.
The expectation of rate cuts by the Federal Reserve is generally positive for equities, as lower interest rates can lead to increased investment and spending, boosting stock prices. SPY, as a broad market ETF, is likely to benefit from this environment.
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