Reported about 2 months ago
Investors are hopeful that recent comments from Federal Reserve Chair Jerome Powell indicating potential interest rate cuts will provide much-needed relief to struggling regional banks. Following Powell's statement, an index tracking mid-size regional banks surged 5%, marking its largest gain of the year. These cuts could improve banks' net interest margins by lowering the rates they pay depositors and reducing unrealized losses on their bond portfolios. However, analysts warn that deeper or quicker cuts could lead to negative impacts if they trigger an economic slowdown.
Source: YAHOO