Fed Chair Powell Says Forecasts Are Highly Uncertain; Growth Has Come In Stronger Than Expected, Requiring Higher Rates
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell has stated that economic forecasts are highly uncertain. However, he noted that growth has been stronger than expected, which may necessitate higher interest rates.
September 20, 2023 | 7:06 pm
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The SPY ETF, which tracks the S&P 500, may be impacted by Powell's comments. Higher interest rates can lead to lower stock prices as borrowing costs increase for companies.
Higher interest rates increase borrowing costs for companies, which can reduce their profitability and thus lower their stock prices. As SPY tracks the S&P 500, it is likely to be negatively impacted by potential interest rate hikes.
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