For the past two months, investors have cared about one thing: interest-rate cuts…
It’s certainly a big deal that, in September, the Federal Reserve cut rates for the first time since 2020. And that first rate cut came in at 50 basis points instead of the widespread expectation for 25, adding to the market’s excitement.
However, investors overlooked another incredibly important development that month… one that had to do with U.S. banks.
In short, banks just won a major victory over capital requirements.
This post originally appeared at DailyWealth.