Fed's Cook Says Business Borrowing Is At High Levels, But Measures Of Debt Servicing Capacity 'Remain Strong Overall' Due To Profits And Limited Impact Of High Interest Rates So Far
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Cook has stated that business borrowing is at high levels, but measures of debt servicing capacity remain strong overall due to profits and limited impact of high interest rates so far.
November 06, 2023 | 4:05 pm
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NEUTRAL IMPACT
The high level of business borrowing could potentially impact the overall market, represented by SPY. However, the strong debt servicing capacity due to profits and limited impact of high interest rates may mitigate any negative effects.
While high levels of business borrowing could potentially lead to increased risk and volatility in the market, the strong debt servicing capacity indicates that businesses are currently able to manage their debt levels effectively. This could limit any potential negative impact on the overall market, and therefore on SPY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50