Fed Chair Powell Says If Economy Evolves As Expected That Would Mean Two More Cuts This Year For A Total Of 50 BPs; The Labor Market Is Still Solid, But "It Really Has Cooled"; Do Not Think Labor Market Needs To Cool Further
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell indicated that if the economy progresses as anticipated, there could be two more interest rate cuts this year, totaling 50 basis points. He noted that while the labor market remains solid, it has shown signs of cooling and does not require further cooling.
September 30, 2024 | 6:17 pm
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The potential for two more interest rate cuts by the Federal Reserve could positively impact SPY, as lower rates generally support stock prices. The cooling labor market may also ease inflation concerns.
Interest rate cuts typically lead to lower borrowing costs, which can boost economic activity and support stock prices. SPY, as an ETF tracking the S&P 500, may benefit from this environment. Additionally, a cooling labor market could reduce inflationary pressures, further supporting equities.
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IMPORTANCE 70
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