Loan Relief Now

With the speculation that the Fed will keep interest rates unchanged, some banking stocks appear to be headed for short-term pullbacks. Business activity appears strong, and therefore change is unlikely. As the article explains in simple terms, if the economic data looked more bleak, the Federal Reserve would lower interest rates to encourage borrowing (and spending) as a jolt to the economy. Bank stocks in turn would rise as loans convert into profit for those institutions. As it is, the chart for J.P. Morgan appears to be holding steady, having been relatively flat since mid April.

Federal Reserve Unlikely to Cut Interest Rates