Will companies like V, MA, and AXP be benefitted or harmed from a federal interest rate decrease? Banks and credit card companies will likely lower their interest rates in tandem with the federal rate decreases. Would this help encourage more spending and improve margins for these companies or would it hurt them as they are collecting less from the already huge stream of credit card debt that is outstanding?
American Express is in a unique spot for this question as they are the ones facilitating and lending, whereas V and MA use other financial institutions to actually lend.
tl;dr
Is the right time to Buy Credit Card stocks before the impending rate cuts or after?
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