The Fed Just Made Its First Decision Under Kevin Warsh. Here's What It Means for Big Bank Stocks.
The Federal Reserve just held rates steady, with a hint that rate hikes could be in the cards.
The Fed Just Made Its First Decision Under Kevin Warsh. Here's What It Means for Big Bank Stocks.
Overview
If there's one constant in the stock market, it is change. When the year began, Wall Street was expecting rate cuts. Rising inflation and a strong employment picture shifted that view, with the outlook now including rate increases later in the year. Or at least that's the big picture takeaway from new Federal Reserve Chairman Kevin Warsh's first Fed meeting.
While it isn't exactly good news that inflation is high, at least partly due to high energy prices driven by the conflict in the Middle East, it isn't fully bad news, either. In fact, steady to higher rates could actually be a net benefit for big banks. Here's why.
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Originally published at www.fool.com.
