Bullard Says Fed Will Have To Go Higher On Policy Rate, Perhaps 50Bps More Hiking This Year; Want To Fight Inflation While The Labor Market Is Strong
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Bank of St. Louis President James Bullard stated that the Fed may need to raise the policy rate by an additional 50 basis points this year to combat inflation while the labor market remains strong.
May 22, 2023 | 1:01 pm
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The potential 50bps rate hike suggested by Fed's Bullard may lead to increased volatility and downward pressure on the stock market, including the SPY ETF.
Higher interest rates generally lead to increased borrowing costs for companies, which can negatively impact their profitability and stock prices. This may result in increased volatility and downward pressure on the stock market, including the SPY ETF, which tracks the S&P 500 index.
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