Stock Market Braces For FOMC Volatility

Stock Market Braces For FOMC Volatility

Join Our Free Trading Group:
Visit this page to become a member == >

The FOMC is responsible for setting monetary policy in the United States, including the federal funds rate, which is the interest rate at which banks can lend to each other overnight.

When the FOMC raises interest rates, it typically leads to higher borrowing costs for consumers and businesses.

This can have a significant impact on financial stocks, as they rely heavily on lending activities to generate revenue and profits.

One potential consequence of higher interest rates is a decline in demand for loans, as consumers and businesses may be less inclined to take on debt when borrowing costs are higher.

This can lead to a decrease in loan volume and ultimately, lower revenue for financial institutions.

 Additionally, rising interest rates can lead to a decrease in the value of existing bonds held by financial institutions, which can negatively impact their balance sheets.

This is because as interest rates increase, the value of existing bonds decreases, since the interest payments on those bonds become less attractive relative to newer, higher-yielding bonds.

On the other hand, higher interest rates can also be beneficial for financial stocks in some ways.

 For example, they can lead to higher net interest margins, which is the difference between the interest income earned on loans and the interest expense paid on deposits.

This can ultimately result in higher profits for financial institutions.

Overall, the impact of the FOMC raising interest rates on financial stocks can be complex and multifaceted.

In this video, we will explore these various impacts in greater detail and discuss what they could mean for investors who are interested in financial stocks.

Learn to Trade Stocks:
Enroll in our trading boot camp...

Join us 7:30 AM for the Stock Market Live Stream (Monday-Friday)
Be sure to SUBSCRIBE to our YOUTUBE channel and hit the LIKE button for updates.

Ready to Uplevel Your Trading?
Schedule an Interview with our team today:

🥇 Smart Money Tactics | Order Flow Trading

🥇 Finviz Screener | Find the Top Stocks to Buy Now

🥇 Sector Rotation Trading Strategy

🥇 Swing Trading Strategy | Candlestick Charts

🥇 Tape Reading Explained

[email protected]


These YouTube stock market live stream videos are for financial education purposes. It's up to you to consult your financial advisor to make the final decision before you decide which stocks to buy now.
The Stock Trading Pro mission: How to know what stocks to buy.

John Whitmore

Click Here to Leave a Comment Below 0 comments

Leave a Reply: