Sep. 16 at 5:25 PM
With a Federal Reserve rate hike on Wednesday already expected by the market, the question remains how many times the central bank may move rates higher. If the Fed continues in that direction, it could weigh on banks, said Bank of America Securities analyst Ebrahim Poonawala said in a note Tuesday.
“A sustained tightening cycle could weigh on customer activity, and derail capital markets momentum if financial conditions tighten materially,” he wrote.
Not only could that tightening impact behavior, but a flattening Treasury yield curve may also challenge bank stocks, he said.
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