Fed's Musalem Says Models Indicate Interest Rates Are Likely To Be Higher Than Pre-Pandemic Levels Going Forward
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve's Musalem has indicated that models suggest interest rates are likely to remain higher than pre-pandemic levels in the future.
August 15, 2024 | 1:49 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The Federal Reserve's indication that interest rates will remain higher than pre-pandemic levels could lead to increased volatility in the SPY ETF, which tracks the S&P 500 index.
Higher interest rates generally lead to increased borrowing costs and can negatively impact corporate profits, which in turn can affect the stock market. SPY, being an ETF that tracks the S&P 500, is likely to experience volatility as investors adjust their expectations.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80