Fed's Mester Says Probably Won't Reach 2% Inflation Until 2026
Portfolio Pulse from Benzinga Newsdesk
In a recent interview with Bloomberg TV, Federal Reserve Bank of Cleveland President Loretta Mester stated that the U.S. is unlikely to reach its 2% inflation target until 2026. This suggests a prolonged period of higher interest rates and potential economic adjustments.
June 14, 2024 | 5:20 pm
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The statement by Fed's Mester indicating that the 2% inflation target may not be reached until 2026 suggests a prolonged period of higher interest rates. This could lead to increased market volatility and potential downward pressure on stock prices in the short term.
Higher interest rates typically lead to lower stock prices as borrowing costs increase and consumer spending decreases. Mester's statement suggests that the market may need to adjust to a longer period of elevated rates, which could negatively impact SPY.
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