After A Hawkish Yellen, These 4 Financial Stocks Are Best Buys
Zacks Investment Research | Aug 28, 2016 10:05PM ET
Fed Chairwoman Janet Yellen said that the case for hiking the federal funds rate has gained in strength in “recent months”, thanks to a solid labor market and a positive outlook on economic activity and inflation. Other Fed officials including her deputy, Fed Vice Chairman Stanley Fisher, also advocated a rate hike in the near term.
Fed’s Regional Bank Boards too backed a discount-rate increase, a clear indication that they favor a change in the main policy rate. Given such optimism, investing in financial stocks will be judicious as the possibility of a rate hike bodes well for these.
Yellen Sounds Hawkish at Jackson Hole
Yellen had sent a strong signal that the Fed is preparing to raise rates sooner than later. At the Jackson Hole economic symposium she said that concerns related to weak economic growth in the first half of the year and global turmoil have dissipated, mostly due to “solid” consumer outlays and a job market rebound following a slump in hiring in spring. July’s nonfarm payrolls had steered past analysts’ expectations by 255,000 job additions, following the upwardly revised 292,000 jobs created in June, according to the Labor Department (read more: Click to get this free report >>
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