Fed's Kashkari Says A Rise In Budget Deficit Would Mean That On The Margin Interest Rates Would Be Higher
Portfolio Pulse from Benzinga Newsdesk
Neel Kashkari from the Federal Reserve indicated that an increase in the budget deficit could lead to higher interest rates. This statement suggests potential impacts on the broader market, including ETFs like SPY, which track the S&P 500.
October 21, 2024 | 5:43 pm
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Neel Kashkari's comments on potential higher interest rates due to a rising budget deficit could affect SPY, as it tracks the S&P 500, which is sensitive to interest rate changes.
SPY, an ETF tracking the S&P 500, could be negatively impacted by higher interest rates as suggested by Kashkari. Higher rates can lead to increased borrowing costs and potentially lower corporate profits, affecting stock prices.
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