Fed's Bostic: Needed To Move Policy Rate Because Risks Had Shifted; Neutral Policy Rate Is In 3 To 3.5% Range; There's A Ways To Go To Get To Neutral; Not In A Rush To Get To Neutral; Will Be Patient; Expect To Get To 2% Inflation Near End Of 2025; That Should Be The Timetable For Getting Rates To Neutral
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Bostic stated that the policy rate needed adjustment due to shifting risks, with a neutral rate estimated between 3% and 3.5%. The Fed is not rushing to reach this neutral rate and expects to achieve 2% inflation by the end of 2025.
October 18, 2024 | 5:29 pm
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NEUTRAL IMPACT
The Federal Reserve's indication of a gradual approach to reaching a neutral policy rate and a long-term inflation target could stabilize market expectations, potentially impacting SPY.
The SPY ETF, which tracks the S&P 500, could be influenced by the Fed's policy direction. A gradual approach to rate changes and a clear inflation target may stabilize investor sentiment, but immediate impacts on SPY are likely neutral as the timeline is extended.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50