Lower Rates to Bring AOCI Relief, Banks Await Fed Outlook

Banks posted an $8.26 billion improvement in accumulated other comprehensive income during the second quarter, reducing total losses to $254.58 billion, S&P Global Market Intelligence wrote. Now, with the Fed about to embark on a "steep rate-cutting cycle," U.S. banks are set to "slash" unrealized losses on their securities portfolios even further, S&P says.

So how much will the Fed cut? Some analysts expect it to lower rates by 75 bps by year-end, according to this S&P article. The Fed's quarterly summary of economic projections and Fed Chair Jerome Powell's post-FOMC press conference later today should bring additional clarity.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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