Fed Officials Expect To Hold Rates Higher For Longer In 2024, 2025 Than In June Projections; Most Fed Officials Still See One More 0.25-pt Rate Increase In 2023
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve officials expect to hold rates higher for longer in 2024 and 2025 than previously projected in June. Most officials still anticipate one more 0.25-point rate increase in 2023.
September 20, 2023 | 6:03 pm
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The SPY ETF, which tracks the S&P 500, may be impacted by the Federal Reserve's decision to hold rates higher for longer. Higher interest rates can lead to lower stock prices as borrowing costs increase for companies.
The SPY ETF tracks the S&P 500, which includes companies that may be affected by higher interest rates. Higher rates increase borrowing costs for companies, which can lead to lower profits and lower stock prices. Therefore, the SPY ETF may decrease in value due to the Fed's decision.
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IMPORTANCE 70
RELEVANCE 80