Wall Street expects the central bank to hold rates steady in its upcoming monetary policy meeting. However, the Fed will likely retain the option of further rate increases if required to bring inflation under control. In a high-interest rate environment, most sectors usually struggle with a high cost of capital. However, the financial sector typically thrives in a high interest-rate environment because its revenues correlate positively to interest rates.
Given this backdrop, fundamentally strong financial stocks Global Payments Inc. (GPN), Visa Inc. (V), and FirstCash Holdings, Inc. (FCFS) could be solid additions to one’s portfolio.
