The Federal Reserve has raised the benchmark interest rates eight times since last year to control inflation, with the most recent being a quarter of a percentage point hike, bringing the benchmark rate to a new range of 4.5% and 4.75%, the highest level since October 2007.
While most industries suffer from a rising interest rate environment with surging borrowing costs affecting their profitability, financial companies, which include banks and insurers, usually benefit from it as it helps them expand their top line. Higher interest rates typically lead to a rise in the net interest income of financial companies.
