Fed Chair Powell Says 'Policy Will Move Over Time Toward More Neutral Stance' If Economy Evolves Broadly As Expected; Risks Are Two-sided, Decisions Will Be Meeting-By-Meeting; U.S. Economy Is In Solid Shape; 'We Intend To Use Our Tools To Keep It There'; Labor Conditions Solid, Labor Market Roughly In Balance; We Do Not Believe We Need To See Further Labor Market Cooling To Achieve 2% Inflation
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell indicated that monetary policy might shift towards a more neutral stance if the economy continues to evolve as expected. He emphasized that decisions will be made on a meeting-by-meeting basis, highlighting the solid state of the U.S. economy and balanced labor market. Powell also mentioned that further cooling of the labor market is not necessary to achieve the 2% inflation target.
September 30, 2024 | 5:56 pm
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POSITIVE IMPACT
The Federal Reserve's potential shift to a more neutral policy stance could impact SPY, as it reflects broader market expectations. The solid state of the U.S. economy and balanced labor market are positive indicators.
SPY, as an ETF that tracks the S&P 500, is sensitive to Federal Reserve policies. A shift towards a neutral stance suggests stability, which is generally positive for equities. The solid economic and labor market conditions further support this outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80