Worried About a Recession? This Bank Is Not
As interest rates move higher, more and more market participants get concerned about a potential recession. Historically, Federal Reserve policy hits the market with a lag, which is generally thought to be between nine months and two years for the full effect. This means that the rate hikes from this year are only beginning to really be felt by companies, and the long string of 75 basis point hikes this year probably has yet to truly impact the economy.
If growth slows down markedly going forward, many banks will likely experience elevated credit losses. Here is why Bank of New York Mellon (NYSE: BK) is probably more insulated than most from this adversity.
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Source Fool.com
