Dallas Fed's Logan: 'More Gradual Path' On Rate Cuts Likely Appropriate From Here; Upside Risks To Inflation Mean Fed Should Not Rush To Reduce Rates; Continue To See A Meaningful Risk Inflation Could Get Stuck Above Fed's 2% Goal; Lowering Policy Rate Gradually Would Allow Time To Judge How Restrictive Monetary Policy May Or May Not Be; Normalizing Policy Gradually Also Allows Fed To 'Best Balance' Labor Market Risks; Policy Not 'Preset,' Fed Must Remain Nimble
Portfolio Pulse from Benzinga Newsdesk
Dallas Fed's Logan suggests a gradual approach to rate cuts due to inflation risks. The Fed should not rush to reduce rates as inflation may remain above the 2% target. A gradual policy allows for better assessment of monetary policy's restrictiveness and balances labor market risks.
October 09, 2024 | 1:17 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility as the Fed signals a gradual approach to rate cuts due to inflation risks. This could impact market sentiment and investor expectations.
The Fed's approach to rate cuts can influence market sentiment and SPY's performance. A gradual path suggests caution, which may lead to mixed investor reactions and potential volatility.
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