Fed's Bostic Says Businesses Reporting They Are At Limits Of Pricing Power And Unable To Fully Pass Through Input Costs
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Raphael Bostic reports that businesses are reaching the limits of their pricing power and are unable to fully pass through input costs. This could indicate potential pressure on profit margins and overall economic growth.
May 16, 2024 | 8:14 pm
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The SPDR S&P 500 ETF (SPY) may experience short-term pressure due to businesses reaching the limits of their pricing power, potentially impacting profit margins and economic growth.
As businesses report they can't fully pass through input costs, this could lead to reduced profit margins and slower economic growth, negatively impacting the broader market represented by SPY.
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