Fed's Bostic Says It Would Not Surprise Me If It Took Longer To Reach 2% Inflation In The U.S. Compared To Other Countries
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Raphael Bostic stated at a Stanford University event that it might take longer for the U.S. to reach the 2% inflation target compared to other countries.
May 23, 2024 | 7:25 pm
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Federal Reserve's Raphael Bostic indicated that the U.S. might take longer to reach the 2% inflation target compared to other countries. This could imply prolonged higher interest rates, potentially affecting the stock market.
Bostic's comments suggest that inflation in the U.S. may remain above the target for a longer period, which could lead to prolonged higher interest rates. This scenario is generally negative for equities, including SPY, as higher rates can reduce corporate profits and increase borrowing costs.
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