- Moody’s downgrade will cut across economics, financial markets.
- Downgrade will have implications for cost of capital, could ripple through economy.
- Will have to wait and see about impact of downgrade on demand for US debt.
- The Fed will have to determine how the downgrade effects an outlook that is already in flux.
- It’s unclear if consumers today can take on the full cost of tariffs given the state of household balance sheets, recent inflation.
- We have to wait 3-6 months to see how uncertainty settles.
Bostic is a hawk and he’s not a voting member in 2025
Fed’s Bostic: Moody’s downgrade will cut across economics, financial markets