Fed's Waller Says Fed Should Proceed With More Caution On Rate Cuts Than Was Needed At Sept Meeting; My Baseline Calls For Reducing Policy Rate Gradually Over The Next Year; Policy Rate Is Currently Restrictive; If Economy Proceeds As Expected, Can Move Policy To A Neutral Stance At 'Deliberate Pace'; If, In A Less Likely Case, Inflation Falls Below 2% Or Labor Market Deteriorates, Fed Can Front-Load Rate Cuts
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Waller suggests a cautious approach to rate cuts, with a gradual reduction over the next year. The current policy rate is restrictive, but could move to a neutral stance if the economy performs as expected. Rapid cuts may occur if inflation drops below 2% or the labor market weakens.
October 14, 2024 | 7:03 pm
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The Federal Reserve's cautious approach to rate cuts, as outlined by Waller, suggests a gradual reduction over the next year. This could impact SPY, as interest rate changes influence market conditions.
SPY, as an ETF tracking the S&P 500, is sensitive to interest rate changes. The Fed's cautious approach suggests stability in the short term, but potential rapid cuts could lead to volatility.
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