Stocks' resilience could spur Fed to keep rates high, Ed Yardeni says

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The stock market's resilience could spur the Fed to keep interest rates higher for longer, market veteran Ed Yardeni says

The majority of traders now expect the Fed to raise interest rates one more time in June, according to– but there's much less consensus on when it could start slashing borrowing costs.

Interest-rate cuts would typically push up stock prices because spending on goods and services tends to rise, listed companies can borrow cash more cheaply, and investors earn slimmer yields by keeping their money in savings accounts.

 

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