Group 1: Federal Reserve Announcements - The Federal Reserve kept interest rates unchanged for the second consecutive time, maintaining the Fed funds rates at 4.25-4.5% [1] - The Fed indicated two potential interest rate cuts for 2025 according to the "dot plot" [1][2] - Changes were made to inflation and growth projections, with inflation expected to rise to 2.8% in 2025, up from a previous forecast of 2.5% [6][8] Group 2: Market Reactions - Markets reacted positively to the Fed's announcements, with all three major indices closing in the green [3] - Rate-sensitive sectors, particularly Financial Services, performed well, with banks seeing notable increases in stock prices [3][4] Group 3: Banking Sector Implications - Banks are likely to face extended periods of elevated funding costs due to unchanged interest rates, impacting net interest incomes (NII) and net interest margins (NIM) [9] - Economic growth is projected to be subdued, with lending scenarios not expected to improve significantly in 2025 [10] - The operating environment for banks is challenging, with weak asset quality posing a major headwind [10][11]

Shares of the China-based technology conglomerate Alibaba Group (BABA 4.49%) were gaining ground on Monday after the Chinese government said yesterday that it would implement a plan to boost consumer spending in the country.A significant part of Alibaba's business is focused on e-commerce, so the Chinese government's move could help boost the company's growth. Investors were optimistic about the opportunity and pushed Alibaba's stock up 4.8% as of 11:56 a.m. ET today A new plan for economic growthChina's go ...

A certificate of deposit (CD) allows you to set aside your cash in an ultra-low-risk account while earning a guaranteed return for several months or years. Until recently, savers enjoyed the highest CD interest rates in nearly two decades. However, after the Federal Reserve began a series of cuts to the federal funds rate in 2024 and 2025, those sky-high rates have been on the decline. If you’re looking to grow your savings in 2026, you may be wondering if CD rates will hold steady, continue dropping, or ...