Fed Minutes: Several Discussed Importance Of Communicating Quantitative Tightening Could Continue For 'Some Time' Even As Rates Are Reduced; Almost All Participants Agreed Upside Risks To Inflation Had Diminished; Most Participants Said Downside Risks To Employment Had Increased; Several Participants Remarked Reducing Policy Restraint Too Soon Or Too Much Could Risk Stalling Or Reversal Of Progress On Inflation
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve's minutes reveal discussions on the continuation of quantitative tightening even if interest rates are reduced. Most participants see diminished inflation risks but increased employment risks. Concerns were raised about reducing policy restraint too soon.
October 09, 2024 | 6:03 pm
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NEUTRAL IMPACT
The Fed's minutes suggest ongoing quantitative tightening, which could impact SPY as it reflects broader market sentiment. Reduced inflation risks and increased employment risks may influence SPY's performance.
SPY, as an ETF tracking the S&P 500, is sensitive to Federal Reserve policies. The continuation of quantitative tightening and discussions on inflation and employment risks could lead to mixed market reactions, keeping SPY's short-term movement neutral.
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