Possible lower rate impact on Bank Stocks

Note: This section contains information in English only.
Source: Dukascopy Bank SA
When interest rates go down, banks may make less money from loans because the difference between what they earn on loans and what they pay on deposits gets smaller. They may also earn less from investments like bonds. Lower rates can make more people borrow money, which helps a bit, and banks may earn more from fees to make up for lost interest income. Donald Trump has generally been critical of the Federal Reserve raising interest rates. He has often argued that higher rates slow economic growth and hurt businesses, especially during his presidency. Trump has favored lower interest rates to encourage borrowing, investment, and stock market gains.



U.S. bank stocks have been relatively stable, with modest declines influenced by Federal Reserve policies and economic trends. European bank stocks are under more pressure, falling due to political uncertainty in countries like France, which has shaken investor confidence.



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