Fed's Kashkari says Neutral Rate Is Likely Higher Now Than Where It Was Pre-Pandemic
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Neel Kashkari suggests that the neutral interest rate is likely higher now compared to pre-pandemic levels. This could impact market expectations and interest rate-sensitive assets.
October 14, 2024 | 2:08 pm
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The statement by Fed's Kashkari about a higher neutral rate could lead to adjustments in market expectations, impacting SPY as it reflects the broader market.
SPY, as an ETF that tracks the S&P 500, is sensitive to changes in interest rate expectations. A higher neutral rate could lead to a reassessment of stock valuations, potentially putting downward pressure on SPY.
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