The Federal Reserve’s benchmark interest rate is now at its highest level in 22 years. While the higher interest rates pose a big challenge for most industries, it is a boon for the financial sector. With interest rates unlikely to be cut this year, the financial industry could continue to benefit from the highest interest rates.
Amid this backdrop, buying financial stocks CPI Card Group Inc. (PMTS) and Medallion Financial Corp. (MFIN) could be wise. On the other hand, despite weak fundamentals, it could be worth watching SoFi Technologies, Inc. (SOFI) due to its strong growth prospects.
