The Fed Has Now Given The Big Banks Two Big Gifts In As Many Days

The first was yesterday… by focusing its bond purchases at the short end, the Fed is steepening the yield curve, making it that much easier for the banks to make money by borrowing short cheap and lending long.

And today, it’s reported that the Fed will soon allow banks to up their dividends, which is a reason for folks to bid up their shares, while also acting as a show of confidence.

As you can see here by the big spike in the financial ETF XLF, the banks have appreciated the gifts.


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