Federal Reserve Vice Chair Raphael Bostic has underscored the potential for economic ripples from Moody’s downgrade of the U.S. credit rating, indicating an expected rise in borrowing costs and financial market shifts. Analysts anticipate these changes to manifest over a three-to-six month timeframe. The Fed’s concern centers on how this alteration may impact funding costs, particularly within the fixed income markets. While some are expecting a short-term market upheaval, others remain cautious about long-term stability. Bostic suggests a closer look at Treasury bond demand as a key indicator of these changes. 3rd-party research indicates a potential for broader economic shifts, including increased borrowing costs and adjustments to investment strategies.