Bank earnings could take a 10% hit if the Fed cuts rates by 75 basis points by 2020, according to Bank of America Merrill Lynch.
Large-cap banks could see their earnings on a per share basis decline by 10% on average if the Fed cuts rates by 75 basis points, according to Bank of America Merrill Lynch.
Traders are pricing in a more than 90% chance of a September rate cut and about 60% probability of three rate cuts this year.Brendan McDermid | Reutersfor several rate cuts this year to salvage an economy they see set to slow significantly because of worsening trade disputes. The market cheered this week when Fed Chairman Jerome Powell opened the door to the possibility.
Bank margins could take a hit if they are paying out deposit rates at a higher level than market rates. Their earnings are also hurt when the spread between short-term and long-term rates flattens, a phenomenon that could worsen if the Fed cuts.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fed Would Consider Interest-Rate Cuts if Growth Outlook DarkensFederal Reserve Vice Chairman Richard Clarida said the U.S. economy remains “in a very good place” but indicated the central bank would consider interest-rate cuts if economic data revealed a risk of a sharper slowdown than officials expect.
Consulte Mais informação »
Fed advised to talk plainly and carry a big stick ahead of conferenceAct quick in a crisis, talk simpler all the time, and do not be afraid of faster...
Consulte Mais informação »
Low-Inflation Trap That Ensnared Japan and Europe Worries FedAs the central bank wraps up a yearlong review, the Fed faces questions on how it should handle its 2% inflation target going forward.
Consulte Mais informação »
Pick your poison: For Fed, it's higher inflation or an inevitable return to quantitative easingThe Great Recession ended a decade ago this month, but for the U.S. Federal Rese...
Consulte Mais informação »
Explainer: The Fed wants ideas on how to target inflationThe Federal Reserve is convening experts to discuss overhauling how the world&0...
Consulte Mais informação »
Renowned New Orleans chef Leah Chase, who fed civil rights leaders, dies at 96The celebrated chef wrote cookbooks, appeared on cooking shows and fed civil rights greats such as Thurgood Marshall and the Rev. Martin Luther King Jr.
Consulte Mais informação »
Low inflation dogs Fed as it reviews policy frameworkIn late 1969, with U.S. unemployment at 3.5%, consumer prices were rising at aro...
Consulte Mais informação »
Stocks in Asia set to trade higher; Fed signals potential rate cutStocks in Asia were set to trade higher on Tuesday amid ongoing global trade tensions. The Reserve Bank of Australia is also set to announce its interest rate decision later today.
Consulte Mais informação »
Dollar on defensive as U.S. bonds surge on Fed rate cut prospectsThe dollar was on the defensive on Tuesday after taking a beating against peers ...
Consulte Mais informação »
Trade Risks Prompt Predictions for Fed Rate CutsEconomists are projecting that uncertainty created by the Trump administration’s actions on tariffs will prompt the Fed to cut rates later this year.
Consulte Mais informação »