Jerome Powell: Big US Banks Could See 20% Increase In Capital Requirements, 2 More Interest Rate Hikes Could Come In 2023
Portfolio Pulse from Piero Cingari
Federal Reserve Chairman Jerome Powell hinted at a potential 20% increase in capital requirements for US banks, particularly those with over $100 billion in assets, during a Senate committee testimony. He also mentioned the possibility of two more interest rate hikes in 2023 if the economy continues to perform as projected.
June 22, 2023 | 4:26 pm
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Bank of America (BAC) could be affected by the potential 20% increase in capital requirements for US banks with over $100 billion in assets, as hinted by Fed Chairman Jerome Powell.
Bank of America (BAC) is one of the major US banks with over $100 billion in assets. The potential 20% increase in capital requirements could negatively impact BAC's stock price in the short term as it may lead to reduced resources and liquidity available for the private sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Goldman Sachs (GS) could be affected by the potential 20% increase in capital requirements for US banks with over $100 billion in assets, as hinted by Fed Chairman Jerome Powell.
Goldman Sachs (GS) is one of the major US banks with over $100 billion in assets. The potential 20% increase in capital requirements could negatively impact GS's stock price in the short term as it may lead to reduced resources and liquidity available for the private sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
JPMorgan Chase (JPM) could be affected by the potential 20% increase in capital requirements for US banks with over $100 billion in assets, as hinted by Fed Chairman Jerome Powell.
JPMorgan Chase (JPM) is one of the major US banks with over $100 billion in assets. The potential 20% increase in capital requirements could negatively impact JPM's stock price in the short term as it may lead to reduced resources and liquidity available for the private sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Morgan Stanley (MS) could be affected by the potential 20% increase in capital requirements for US banks with over $100 billion in assets, as hinted by Fed Chairman Jerome Powell.
Morgan Stanley (MS) is one of the major US banks with over $100 billion in assets. The potential 20% increase in capital requirements could negatively impact MS's stock price in the short term as it may lead to reduced resources and liquidity available for the private sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Wells Fargo (WFC) could be affected by the potential 20% increase in capital requirements for US banks with over $100 billion in assets, as hinted by Fed Chairman Jerome Powell.
Wells Fargo (WFC) is one of the major US banks with over $100 billion in assets. The potential 20% increase in capital requirements could negatively impact WFC's stock price in the short term as it may lead to reduced resources and liquidity available for the private sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) traded 0.9% lower on Thursday after Fed Chairman Jerome Powell hinted at a potential 20% increase in capital requirements for US banks.
The potential increase in capital requirements for US banks could lead to a short-term negative impact on the Financial Select Sector SPDR Fund (XLF) as it represents the financial sector. The news of a 0.9% decline in XLF's value on Thursday supports this analysis.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100