Last week, the Federal Reserve approved a 0.25 percentage point rate hike to fight high inflation. Notably, the Consumer Price Index (CPI) stood at 7.87% in February 2022 in the U.S., which is a 40-year high. Most analysts anticipate another six interest rate hikes in 2022 to stabilize the economy.
A higher interest rate environment is beneficial for the financial industry. That’s because their profit margins expand as rates climb.
