Fed's Kashkari Says Immigration Policy Will Affect Our Reading Of The Labor Market; Tariffs Shouldn't Be Themselves Lead To Ongoing Inflation, Probably A One-time Change In Price Level; We Definitely Want To Avoid Recession, Saw Signs Of Labor Market Weakening, That's Why Fed Cut By 50 BPS; Going Forward We Will Look All The Data To Decide On Rate Policy
Portfolio Pulse from Benzinga Newsdesk
Neel Kashkari from the Federal Reserve discussed the impact of immigration policy on labor market readings and stated that tariffs likely cause a one-time price change rather than ongoing inflation. He emphasized the importance of avoiding a recession and noted signs of labor market weakening, which led to a 50 basis point rate cut. Future rate policy will depend on comprehensive data analysis.

October 21, 2024 | 6:04 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may experience volatility due to Fed's focus on labor market data and potential future rate changes. Kashkari's comments suggest a cautious approach to rate policy, which could impact market sentiment.
Kashkari's comments on labor market and rate policy are relevant to SPY as they indicate potential future monetary policy changes. However, no immediate action is suggested, leading to a neutral short-term impact.
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