Bostic Said Our New Steady State On Interest Rates Is Likely To Be Higher Than What People Have Been Used To For The Past Decade
Portfolio Pulse from Charles Gross
Federal Reserve Bank of Atlanta President 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 | 11:51 am
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The statement by Fed's Bostic suggests that interest rates will remain higher for a longer period, which could impact the performance of the SPY ETF as higher rates generally lead to lower stock prices.
Higher interest rates typically lead to higher borrowing costs and lower consumer spending, which can negatively impact corporate earnings and stock prices. As SPY tracks the S&P 500, it is likely to be affected by these broader market trends.
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IMPORTANCE 70
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