Odaily News Atlanta Federal Reserve Bank President Bostic said that Moody's downgrade of the US rating will affect the entire economy and financial markets. The downgrade will have an impact on the cost of funds, which may affect the entire economy. The impact of the downgrade on the demand for US Treasury bonds will be watched.
The Fed will have to determine how the downgrade will affect an already shaky outlook. Given the state of household balance sheets and recent inflation, it is unclear whether consumers can bear the full cost of tariffs. It will take three to six months to see how uncertainty gradually dissipates.