Fed's Barkin Says 'Last Mile' Of Inflation May Still Take Longer Than Expected, Worried Price Pressures Could Get 'Stuck' Next Year; Sees Two Further Quarter-Percentage-Point Cuts This Year As 'A Reasonable Path' If Economy Evolves As Expected; Expects Unemployment, Inflation To Stay Roughly Stable For Rest Of This Year; Sees Renewed Tight Labor And Demand Spurred By Fed Rate Cuts As Possibly Keeping Inflation Lodged
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Barkin suggests that the final phase of reducing inflation may take longer than anticipated, with concerns that price pressures could persist into next year. He anticipates two more quarter-percentage-point rate cuts this year if the economy progresses as expected, with unemployment and inflation remaining stable. However, renewed labor and demand pressures from rate cuts could keep inflation elevated.
October 02, 2024 | 7:16 pm
News sentiment analysis
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility due to Fed's Barkin's comments on inflation and potential rate cuts. If the economy evolves as expected, two rate cuts could impact market sentiment.
Barkin's comments on potential rate cuts and inflation persistence could influence investor sentiment towards SPY. While rate cuts are generally positive for equities, persistent inflation concerns may offset this effect, leading to potential volatility.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70