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17 handpicked stocks

Banking On The Fed's Rate Hold

The Federal Reserve's decision to maintain current interest rates, despite political pressure, signals a commitment to managing inflation. This creates an investment opportunity in companies that benefit from a stable and higher interest rate environment, such as banks and other financial services firms.

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Author avatar

Han Tan | Market Analyst

Updated 1 day ago | Published at July 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

FISI

Financial Institutions Inc

FISI

Current price

$25.78

PFIS

PEOPLES FINANCIAL SERVICES

PFIS

Current price

$50.18

RF

Regions Financial Corp.

RF

Current price

$25.60

About This Group of Stocks

1

Our Expert Thinking

The Federal Reserve's commitment to holding interest rates steady creates a favorable environment for financial institutions. Banks and financial services companies benefit from wider net interest margins when rates remain elevated, as they can earn more on loans while keeping deposit costs relatively stable.

2

What You Need to Know

This group focuses on banks and financial firms that profit directly from interest rate spreads. These companies typically see improved profitability in stable, higher-rate environments. The theme represents a tactical opportunity tied to current monetary policy decisions.

3

Why These Stocks

These financial institutions were handpicked based on their ability to capitalize on the Fed's rate policy. Each company's business model is designed to benefit from sustained higher interest rates, making them well-positioned for the current economic landscape.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+9.92%

Group Performance Snapshot

9.92%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 9.92% over the next year.

13 of 17

Stocks Rated Buy by Analysts

13 of 17 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏦

Fed Independence Pays Off

The Federal Reserve's commitment to maintaining rates despite political pressure creates a stable environment where banks can maximize their profit margins. This independence signals strength for financial sector investments.

📈

Higher Rates, Higher Profits

Banks make money on the difference between what they pay depositors and what they charge borrowers. Sustained higher rates mean wider spreads and potentially stronger earnings for these financial institutions.

Tactical Opportunity Window

This monetary policy stance creates a specific window of opportunity for financial stocks. Smart investors are positioning themselves to benefit from this rate environment before conditions change.

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