Federal Reserve Boston: Moody's downgrade of US credit rating may make business costs more expensive.

The Federal Reserve's Bostic said on Monday that Moody's downgrade of the United States credit rating could make capital more expensive for American companies and have broader effects on the economy. Bostic said at the Atlanta Fed's financial markets conference, "This will have implications on capital costs and other aspects, so it may have a ripple effect on the economy. I think we will have to wait three to six months before we can start to see how things develop."