Why Shares of Bank of America, JPMorgan, Wells Fargo, and Citigroup All Fell Today
Shares of the major U.S. banks all were lower today after the Federal Reserve indicated yesterday that inflation might not be as temporary as some had initially thought. Shares of Bank of America (NYSE: BAC) fell more than 4% on Thursday, Wells Fargo (NYSE: WFC) closed roughly 6% lower, Citigroup (NYSE: C) dipped 3.7%, and JPMorgan Chase (NYSE: JPM) was more than 2.9% lower.
The Federal Open Market Committee (FOMC) on Wednesday appeared to surprise the market, accelerating its timeline for when it expects to increase the federal funds rate, which influences most other rates and currently sits near zero.
While the FOMC left rates unchanged, as expected, it indicated that rate hikes could begin in 2023; previously, the FOMC had indicated that rates would stay near zero until 2024. The committee's dot plot that shows when individual members expect rates to rise suggested there will be two rate hikes in 2023.
Source Fool.com
