US big banks edge down after Fed rate hike

Wells Fargo & Company

16/09/2026 20:02

** Shares of big U.S. banks fall in the afternoon session after Federal Reserve raises interest rates and flags further increases in the coming months
** Fed lifts benchmark interest rate to the 3.75%-4.00% range
** Higher interest rates can weigh on banks by curbing loan demand and increasing the risk of credit losses if economic growth slows
** Goldman Sachs GS.N drops 1%, JPMorgan Chase JPM.N loses 0.7%, Wells Fargo WFC.N down 2%; Bank of America BAC.N falls 2.4%, Citigroup C.N dips 1% and Morgan Stanley MS.N shares hover around the flatline
** "I wouldn’t bank on another hike this year. Yes, the median dot shows another hike this year, but a lot can change between now and then," says Brian Jacobsen, chief economic strategist of Annex Wealth Management
** Adds "Warsh not only read the markets, but he read the room, supporting a rate hike. That’s why we can get a relatively muted response from the markets despite the change in course"

(Reporting by Pragyan Kalita in Bengaluru)
((Pragyan.Kalita@thomsonreuters.com;))