Fed's Kashkari Says A Rise In Budget Deficit Would Mean That On The Margin Interest Rates Would Be Higher; Very Few Transactions Happen On Crypto, Unless Its Drugs Or Illegal Activity
Portfolio Pulse from Benzinga Newsdesk
Neel Kashkari from the Federal Reserve suggests that an increase in the budget deficit could lead to higher interest rates. He also comments on the limited legitimate use of cryptocurrencies, implying most transactions are related to illegal activities.
October 21, 2024 | 5:46 pm
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Kashkari's comments on potential higher interest rates due to budget deficits could impact SPY, as interest rate changes influence stock market performance.
Higher interest rates generally lead to lower stock prices as borrowing costs increase and future earnings are discounted more heavily. SPY, as an ETF tracking the S&P 500, could be negatively impacted by such a macroeconomic shift.
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