Earnings Preview 2019 #infographic

 Earnings Preview 2019 #infographic

The Federal Open Market Committee's decision to remove two cuts in the federal funds rate in the third quarter was intended to help minimize the risk of the US economy falling into recession. This means a decrease in the number of short-term loans indexed to short-term rates would boost the lenders ' net interest income.

Some lenders are unable to compensate for lost revenue with lower financing costs. Meanwhile, by significantly lowering the long-term interest rates of banks, bond markets have projected additional stimulus to the central bank.

For other developed economies, the US is facing a competitive disadvantage, so President Trump continues to pursue substantially lower interest rates. Keefe, Bruyette and Woods analyst Federich Cannon were the banks he expected to experience the biggest declines in income if the new Fed plan was taken potentially at an extreme level of negative interest rates.

 Earnings Preview 2019 #infographic

infographic by: www.asktraders.com

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