2024-04-28 03:25:00 ET
Since last November, Bank of America (NYSE: BAC) stock has gone on a tear, gaining nearly 44%. Bank stocks have benefited from the Federal Reserve pausing its interest rate-hiking campaign. However, inflationary pressures remain sticky, pushing back interest rate cut expectations for 2024.
Given this evolving backdrop, does Bank of America deserve a spot in your portfolio?
One reason for the company's rising share price is the Federal Reserve and its interest rate policy. In July, the Federal Reserve made perhaps its final interest rate hike of the cycle when it raised the federal funds rate to an upper range of 5.5%. In December, the Federal Reserve continued to hold interest rates in place, and the committee projected that it would cut them three times in 2024.
For further details see:
Bank of America Stock: Buy, Sell, or Hold?