Most of the major bank stocks are rising in the wake of the Federal Reserve’s Wednesday announcements.
The Fed announced that it would start unwinding its $US4.5 trillion balance sheet in October. It will do this by slowly letting bonds roll off its balance sheet by not reinvesting them as they mature. The central bank will begin the process slowly, and increase its unwind over time.
The Fed also signalled it sees one more rate hike this year and implied three hikes in 2018.
Wednesday’s moves show the Fed is serious about exiting the emergency measures that were taken during the financial crisis.
Ahead of the Fed, the KBW Nasdaq Bank Index was trading lower. However, bank stocks are largely higher after the Fed’s announcement. Some of the biggest banks and their moves are listed below:
- Bank of America (BAC) +1.29% at $US25.18
- JPMorgan (JPM) +1.15% at $US95.03
- Citigroup (C) +1.21% at $US71.99
- Key Corp (KEY) +0.17% at $US18.17
- Wells Fargo (WFC) +1.03% at $US53.91
- Capital One (COF) +1.20% at $US81.97
- BB&T (BBT) +0.65% at $US2.87
- Goldman Sachs (GS) +0.94% at $US230.97
- PNC (PNC) +1.69% at $US133.50
- SunTrust (STI) +1.00% at $US56.58