Fed's Bostic Says Our New Steady State On Interest Rates Is Likely To Be Higher Than What People Have Been Used To For Past Decade
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Raphael Bostic stated that the new steady state for interest rates is likely to be higher than what people have been accustomed to over the past decade.
May 20, 2024 | 11:44 am
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The Federal Reserve's indication of a higher steady state for interest rates could lead to increased volatility in the SPY ETF, which tracks the S&P 500. Higher interest rates generally lead to higher borrowing costs and can impact corporate profits.
Higher interest rates typically result in higher borrowing costs for companies, which can reduce profit margins and lead to lower stock prices. As SPY tracks the S&P 500, it is likely to be impacted by these changes.
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IMPORTANCE 90
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