The Fed Raised Interest Rates Again: What It Means for This Warren Buffett Stock
On Wednesday, the Federal Reserve announced it is increasing its benchmark interest rate by 0.75% in its continued effort to fight inflation.
Rising interest rates impact every part of the economy, from how much interest you earn on your deposits to the amount of interest paid on credit cards and other loans.
Banking stocks are sensitive to changes in interest rates and can do quite well when interest rates rise. However, rising rates have another effect that can hurt banks. Here's how this trend could affect one of Warren Buffett's biggest holdings.
Source Fool.com