Fed's Bostic Says Surprised By How Fast Inflation Fell In 2023; Post-Pandemic Economy May Be Less Sensitive To Rates; Low-Cost Debt Reduces Sensitivity To Rate Hikes
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Raphael Bostic expressed surprise at the rapid decline in inflation in 2023 and suggested that the post-pandemic economy might be less sensitive to interest rate changes. He also noted that low-cost debt is reducing the economy's sensitivity to rate hikes.
May 23, 2024 | 7:12 pm
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The SPDR S&P 500 ETF (SPY) may experience increased volatility due to Bostic's comments on inflation and interest rates. The market could react positively to the notion of a less rate-sensitive economy but may also be cautious about future rate hikes.
Bostic's comments suggest a complex economic outlook. While a less rate-sensitive economy could be positive, uncertainty about future rate hikes may cause mixed reactions in SPY.
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IMPORTANCE 70
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