Why Schwab Won't Benefit From Interest Rate Cuts

The online broker makes more money when interest rates are high and/or rising.As expected, on Wednesday, the Federal Reserve cut the U.S.'s baseline interest rate. The Fed Funds rate was lowered by 50 basis points, pulling most other interest rates lower with it. The Fed committee responsible for such decisions also suggests more rate cuts are in the near-term cards, which should stimulate the economy without reigniting inflation. That's why investors are celebrating the move, and the rhetoric.Not every com ...