Fed's Kashkari Says There Is Huge Uncertainty About What Neutral Fed Funds Rate It; Now See Neutral Fed Funds Rate As Close To 3%
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Neel Kashkari expressed uncertainty about the neutral Fed funds rate, now seeing it close to 3%. This statement could influence market expectations and interest rate-sensitive assets.
October 07, 2024 | 6:40 pm
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NEUTRAL IMPACT
The statement by Fed's Kashkari about the neutral Fed funds rate being close to 3% introduces uncertainty in the market, potentially affecting SPY as it reflects the broader market sentiment.
SPY, as an ETF tracking the S&P 500, is sensitive to changes in interest rate expectations. Kashkari's comments introduce uncertainty, which could lead to market volatility. However, the direct impact on SPY is neutral as it depends on broader market reactions.
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IMPORTANCE 60
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