Bank stocks all moved higher early Tuesday, Sept. 19, ahead of the start of the Federal Reserve's two-day Federal Open Market Committee meeting, during which the monetary policy arm of the bank is expected to keep interest rates at current levels but begin unwinding the Fed's long balance sheet.
Shares of JPMorgan Chase & Co. (JPM) - Get Report traded up 0.5% to $93.37, while Goldman Sachs Group Inc. (GS) - Get Report stock gained 0.7% to $229. Bank of America Corp. (BAC) - Get Report stock was up 0.5% to $24.82, Morgan Stanley (MS) - Get Report shares increased 0.4% to $47.51, Citigroup Inc. (C) - Get Report stock added 0.6% to $70.99 and Wells Fargo & Co. (WFC) - Get Report shares traded up 0.8% to $53.15.
The Fed's FOMC meeting begins Tuesday and will conclude Wednesday, Sept. 20, with an announcement on interest rates and a press conference led by chairwoman Janet Yellen.
Markets have priced in a near-zero chance that the Fed will change interest rates. At the same time, markets expect with near certainty that the Fed will begin trimming its $4.5 trillion balance sheet, which would have similar effects to a rate hike.
Fed funds futures are currently pricing in a nearly 61% chance of a 25-basis-point increase at the December meeting, putting the federal funds rate at 1.25% to 1.5%.
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