The Federal Reserve’s mid-June decision to increase interest rates by 75 basis points will be a tailwind for banks.
Banks pay you to deposit your money, but they lend that money out at a higher interest rate.
This creates the net interest margin, a key revenue source for banks nationwide.
U.S. banks earned $263 billion in net income last year — a 92.8% increase from 2020.
Banks were raking in cash before the Fed raised rates. With this latest hike, I expect net income to skyrocket from here.
That bring us to today’s Power Stock…
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