Motley Fool Money 0.75 Rate Hike Gets Thumbs-Up From Investors
Jun 15, 2022
Ron Gross, a Senior Analyst at Motley Fool, delves into the Federal Reserve's recent rate hike, the highest since 1994, and discusses its positive reception in the stock market. He highlights expectations for lower inflation in 2023 and the implications of rising borrowing costs. Asit Sharma interviews Pubmatic CEO Rajeev Goel, who shares insights on the company's profitability and the booming connected TV advertising market. Together, they explore opportunities in automating advertising sales and the trend toward optimizing ad spending.
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Fed's Biggest Rate Hike
- The Federal Reserve implemented the largest rate hike since 1994, increasing rates by 0.75%.
- This move aims to combat inflation, but also risks slowing economic growth.
Impact of Rate Hikes
- While necessary to curb inflation, higher interest rates negatively impact businesses by increasing borrowing costs.
- Homebuyers also face challenges as rising rates make homes less affordable.
Pubmatic Benefits from Ad Spending
- Advertising spending continues to rise, benefiting companies like Pubmatic.
- Pubmatic facilitates ad sales for publishers using automated systems and processes billions of ad impressions daily.