
doi: 10.2139/ssrn.6462759
This study investigates the relationship between the Federal Reserve's overnight interest rates (DFF) and bank stock prices using panel data from 55 banks. This research aims to evaluate the impact of changes in interest rates on the performance of bank stocks. Utilizing pooled OLS and fixed-effects models, the analysis finds a significant positive relationship between interest rate changes and banking stock prices. The results challenge the negative correlation found in previous literature on the performance of general stocks and interest rates
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