We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights JPMorgan, Bank of America, Citigroup, Wells Fargo and KeyCorp
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 20, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) , Wells Fargo & Co. (WFC - Free Report) and KeyCorp (KEY - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Fed Keeps Rates Steady amid Rising Inflation: What It Means for Banks
After the two-day FOMC meeting on Wednesday, the Federal Reserve kept its benchmark interest rate steady at 3.5-3.75% for the second consecutive time.
Meanwhile, the "dot plot," which maps out policymakers' expectations for where interest rates could be headed in the future, indicated one interest rate cut for 2026.
The Fed acknowledged that inflation will rise in 2026 due to uncertainty surrounding the Iran war. Given the concerns, the market reacted strongly and many banking stocks, including JPMorgan, Bank of America, Citigroup, Wells Fargo & Co. and KeyCorp, slid yesterday. Also, the KBW Nasdaq Regional Banking Index and the S&P Banks Select Industry Index fell 1.3% and 1.2%, respectively.
Before we discuss the implications of the Fed's announcements on banking stocks, let us check them out in detail.
Fed Ups Inflation Target, Growth Forecast
Fed Chairman Jerome Powell acknowledged that the Iran war will raise inflation as a fresh jump in oil prices sent short-term U.S. borrowing costs to the highest level since last summer. During the press conference following the meeting, Powell said that in the near term, "higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy". He also highlighted concerns regarding the slowing job market.
Against that backdrop, Fed officials revised their outlook for economic growth and inflation. Per the latest Summary of Economic Projections for 2026, inflation will be 2.7%, an upward tick from the 2.4% projected in December 2025.
The U.S. economy is anticipated to grow 2.4% this year and 2.3% in 2027. This shows an upward change from the prior economic growth targets of 2.3% and 2% for 2026 and 2027, respectively.
How Will Banks Be Affected by the Fed Announcement?
With three cuts in 2025, interest rates have declined meaningfully from the peak range of 5-5.25%. This has supported net interest income and net interest margin (NIM) expansion for banks, such as JPMorgan, Bank of America, Citigroup, Wells Fargo and KeyCorp, in 2025.
Looking ahead, steady economic growth is expected to support lending activity. However, the operating environment for banks is increasingly turning tough because of geopolitical conflicts (mainly in the Middle East), no changes in interest rates and persistent inflation. Asset quality is also expected to stay under pressure in the near term, as borrowers may continue to struggle with loan repayments.
Though banks are seeing early signs of NIM stabilization, a meaningful improvement in the sector's overall operating environment is unlikely in the near term. Hence, any broad-based recovery in the banks' financials will likely be gradual rather than immediate.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
The Zacks Analyst Blog Highlights JPMorgan, Bank of America, Citigroup, Wells Fargo and KeyCorp
For Immediate Release
Chicago, IL – March 20, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) , Wells Fargo & Co. (WFC - Free Report) and KeyCorp (KEY - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Fed Keeps Rates Steady amid Rising Inflation: What It Means for Banks
After the two-day FOMC meeting on Wednesday, the Federal Reserve kept its benchmark interest rate steady at 3.5-3.75% for the second consecutive time.
Meanwhile, the "dot plot," which maps out policymakers' expectations for where interest rates could be headed in the future, indicated one interest rate cut for 2026.
The Fed acknowledged that inflation will rise in 2026 due to uncertainty surrounding the Iran war. Given the concerns, the market reacted strongly and many banking stocks, including JPMorgan, Bank of America, Citigroup, Wells Fargo & Co. and KeyCorp, slid yesterday. Also, the KBW Nasdaq Regional Banking Index and the S&P Banks Select Industry Index fell 1.3% and 1.2%, respectively.
Before we discuss the implications of the Fed's announcements on banking stocks, let us check them out in detail.
Fed Ups Inflation Target, Growth Forecast
Fed Chairman Jerome Powell acknowledged that the Iran war will raise inflation as a fresh jump in oil prices sent short-term U.S. borrowing costs to the highest level since last summer. During the press conference following the meeting, Powell said that in the near term, "higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy". He also highlighted concerns regarding the slowing job market.
Against that backdrop, Fed officials revised their outlook for economic growth and inflation. Per the latest Summary of Economic Projections for 2026, inflation will be 2.7%, an upward tick from the 2.4% projected in December 2025.
The U.S. economy is anticipated to grow 2.4% this year and 2.3% in 2027. This shows an upward change from the prior economic growth targets of 2.3% and 2% for 2026 and 2027, respectively.
How Will Banks Be Affected by the Fed Announcement?
With three cuts in 2025, interest rates have declined meaningfully from the peak range of 5-5.25%. This has supported net interest income and net interest margin (NIM) expansion for banks, such as JPMorgan, Bank of America, Citigroup, Wells Fargo and KeyCorp, in 2025.
Looking ahead, steady economic growth is expected to support lending activity. However, the operating environment for banks is increasingly turning tough because of geopolitical conflicts (mainly in the Middle East), no changes in interest rates and persistent inflation. Asset quality is also expected to stay under pressure in the near term, as borrowers may continue to struggle with loan repayments.
Though banks are seeing early signs of NIM stabilization, a meaningful improvement in the sector's overall operating environment is unlikely in the near term. Hence, any broad-based recovery in the banks' financials will likely be gradual rather than immediate.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.