Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    82.78
    +1.43 (+1.76%)
     
  • GOLD FUTURES

    2,239.80
    +27.10 (+1.22%)
     
  • DOW

    39,759.79
    -0.29 (-0.00%)
     
  • Bitcoin GBP

    55,906.83
    +1,102.34 (+2.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,373.51
    -26.01 (-0.16%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Bank stocks are rising after the Fed announces it will unwind its balance sheet

Janet Yellen
Janet Yellen

(Federal Reserve Board Chair Janet Yellen testifies before the Senate Banking Committee at Capitol Hill in Washington, U.S., June 21, 2016.Reuters/Carlos Barria)

Most of the major bank stocks are rising in the wake of the Federal Reserve's Wednesday announcements.

The Fed announced that it would start unwinding its $4.5 trillion balance sheet in October. It will do this by slowly letting bonds roll off its balance sheet by not reinvesting them as they mature. The central bank will begin the process slowly, and increase its unwind over time.

The Fed also signaled it sees one more rate hike this year and implied three hikes in 2018.

ADVERTISEMENT

Wednesday's moves show the Fed is serious about exiting the emergency measures that were taken during the financial crisis.

Ahead of the Fed, the KBW Nasdaq Bank Index was trading lower. However, bank stocks are largely higher after the Fed's announcement. Some of the biggest banks and their moves are listed below:

NOW WATCH: Amazon's transformation of Whole Foods puts the entire grocery industry on notice



More From Business Insider