Fed's Kashkari Says Fed Is Committed To Achieving Its 2% Inflation Goal; With Higher U.S. Government Debt It Might Take Higher Borrowing Costs In The Nearer Term To Achieve 2% Inflation
Portfolio Pulse from Benzinga Newsdesk
Fed's Kashkari emphasized the Federal Reserve's commitment to achieving its 2% inflation goal. He noted that higher U.S. government debt might necessitate higher borrowing costs in the near term to reach this target.
May 15, 2024 | 4:30 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The Federal Reserve's commitment to achieving a 2% inflation goal and the potential for higher borrowing costs due to increased U.S. government debt could impact the SPY ETF, which tracks the S&P 500.
Higher borrowing costs can lead to increased expenses for companies, potentially reducing their profitability and negatively impacting stock prices. As SPY tracks the S&P 500, it could see a short-term decline.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80