• Sun. Feb 5th, 2023

Fed Chair Jerome Powell Could Move Markets With His Speech On Inflation Wednesday Afternoon: What You Need To Know – SPDR S&P 500 (ARCA:SPY)

ByAdam Eckert

Nov 30, 2022
Fed Chair Jerome Powell Could Move Markets With His Speech On Inflation Wednesday Afternoon: What You Need To Know - SPDR S&P 500 (ARCA:SPY)

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Investors will be looking for clues about the Federal Reserve’s next moves in its fight against inflation when Fed Chair Jerome Powell speaks Wednesday afternoon.

What To Know: Powell is set to give a speech on the economic outlook, inflation and the labor market at the Brookings Institution in Washington, D.C. Wednesday at 1:30 p.m. ET. 

The Fed Chair is expected to provide further insight into the central bank’s current thinking on future rate hikes.

Why It Matters: The Fed’s final meeting of the year is slated for mid-December. Most expect the central bank to opt for a smaller 0.5% rate increase, following an aggressive series of four consecutive 0.75% rate hikes

On Tuesday, Wharton Professor of Finance Jeremy Siegel laid out expectations for the Fed’s upcoming meeting on Dec. 14.

“I do expect the 50 basis points … I really hope that they really just pause after that,” Siegel said. 

Related Link: Wharton Professor Jeremy Siegel Says 2023 Recession Odds ‘Virtually 100%’ If The Fed Doesn’t Pivot: Here’s What Needs To Happen

The Wharton Professor anticipates that improving price data will steer the Fed away from its 0.75% rate hike course in December. 

“I think they’re going to pivot once they see the weakness in the data come through,” he said.

Any sign of a pivot from Powell on future rate adjustments could push the SPDR S&P 500 SPY significantly higher.

SPY Price Action: The SPY was up 0.02% at $395.30 ahead of Powell’s speech, according to Benzinga Pro.

Photo: courtesy of the Federal Reserve.

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Image and article originally from www.benzinga.com. Read the original article here.