Shares of banks and other financial institutions experienced a rise in response to the stabilization of interest rates. This increase was driven by a surge in rates on long-term Treasuries, creating favorable lending opportunities for banks and alleviating concerns regarding an inverted yield curve.
Federal Reserve officials, Bank of New York President John Williams and Gov. Michelle Bowman, indicated their support for further rate increases. Additionally, recent money-supply data suggests that the financial conditions tightened by the Fed's interest-rate hikes have eased, according to J.D. Joyce, president of Houston financial advisory firm Joyce Wealth Management.
Joyce explained that although money supply significantly increased during the Covid pandemic, the Fed has been gradually withdrawing money from the economy since last year. Surprisingly, the latest estimate of money supply in the U.S. shows a reversal of this trend.
Furthermore, investment firm KKR reported a profit in the second quarter due to higher revenue and an increase in assets under management. The firm's investments also gained substantial value during this period.
