Fed's Bowman Says I Continue To Expect We Will Need To Increase The Federal Funds Rate Further; Says Fed Funds Rate Currently Appears Restrictive, Financial Conditions Have Tightened Since Sept
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Bowman has stated that she expects the Federal Funds Rate to increase further, indicating that the current rate appears restrictive and financial conditions have tightened since September.

November 07, 2023 | 6:33 pm
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The expected increase in the Federal Funds Rate could impact the SPY ETF, as higher interest rates generally lead to tighter financial conditions, potentially affecting market performance.
The Federal Funds Rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. An increase in this rate can lead to tighter financial conditions, as it becomes more expensive for banks to borrow money. This can slow economic growth and potentially lead to a decrease in stock prices, impacting ETFs like SPY.
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