Possible scenario
Higher-for-Longer Repricing
38% Chance
Markets treat Cook's warning as part of a coordinated Fed shift after similar comments from John Williams. Investors price fewer 2027 rate cuts as AI-related power demand, data-center construction, and debt issuance keep inflation risks elevated.
Initial impacts
- 10-year Treasury yield Up
- Riskier companies' borrowing costs Up
- Market volatility Up
- US dollar Up
Secondary impacts
- Utilities -1.1%
- Technology -1.0%
- Finance
Portfolio impact
S&P 500-0.9%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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