Richmond Fed's Barkin Says If Inflation Remains High And Demand Gives 'No Signal' It Is Likely To Drop, That Would Require Tighter Monetary Policy
Portfolio Pulse from Benzinga Newsdesk
Richmond Fed's Barkin has indicated that if inflation remains high and demand shows no signs of dropping, a tighter monetary policy may be required. This could potentially impact the broader market and ETFs like SPY.
August 22, 2023 | 3:54 pm
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The potential for tighter monetary policy could impact the broader market and ETFs like SPY. Higher interest rates could lead to lower stock prices.
Tighter monetary policy often leads to higher interest rates, which can make borrowing more expensive for companies, potentially leading to lower stock prices. As SPY is a broad market ETF, it could be negatively impacted by these potential changes.
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