Fed's Barkin Says Half-Percentage-Point Rate Cut In September Warranted Because Rates Were 'out Of Sync' With Decline In Inflation And The Unemployment Rate Near Its Sustainable Level; Fed Can't Declare Inflation Battle Over, Says He Expects Little Further Drop In Core Personal Consumption Expenditures Price Index Until Next Year; Half Percentage Point Of Cuts Shown As The Median Fed Policymaker Projection For The Rest Of This Year Would Also Take 'a Little Bit Of The Edge Off' Rates
Portfolio Pulse from Benzinga Newsdesk
Fed's Barkin suggests a half-percentage-point rate cut in September was justified due to rates being misaligned with inflation and unemployment trends. He anticipates minimal further decline in core PCE price index until next year. The median Fed projection indicates further rate cuts this year.
October 02, 2024 | 4:08 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility due to Fed's Barkin's comments on rate cuts and inflation. The anticipation of further rate cuts could influence market sentiment and SPY's performance.
Barkin's comments on rate cuts and inflation impact market expectations. SPY, as a broad market ETF, is sensitive to such macroeconomic signals. The potential for further rate cuts could boost investor sentiment, positively affecting SPY.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70