With No Interest Rate Cut, Should You Sell SoFi Stock?
Banks could be negatively impacted as rates stay high.
With No Interest Rate Cut, Should You Sell SoFi Stock?
Overview
The market wasn't too thrilled last week with Federal Reserve Chairman Kevin Warsh's new policy to abstain from providing forward interest rate guidance, and a week later, it hasn't recovered. Rates were kept steady for now, as expected, and the Federal Open Market Committee (FOMC) did provide its own dot plot signaling potential hikes before the year is out.
Investors don't like high interest rates because they slow the flow of money into the economy. And that's the Federal Reserve's goal when it's battling inflation; too much money in the market makes it cheaper. In the short term, it could also negatively impact many businesses, as less economic activity means less spending.
Details
While that could apply to almost any company, high interest rates could be especially challenging for banks, and specifically for a bank like SoFi Technologies (NASDAQ: SOFI).
Source
Originally published at www.fool.com.
