Fewer rate cuts will boost banks in 2025. Here's how.

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The Federal Reserve has reduced its projected interest rate cuts for 2025 to just two cuts. While broader markets reacted negatively to fewer anticipated rate cuts, slower monetary policy appears to be bullish for the banking sector.

Yahoo Finance Reporter David Hollerith analyzes how this more gradual approach to rate cuts could benefit big banks, particularly focusing on its potential positive impact on major banks' profit margins.

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This post was written by Angel Smith