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The Federal Reserve Building in Washington.
The Federal Reserve Building in Washington.
(STELIOS VARIAS/REUTERS)

SCOTT BARLOW

Believe it or not, U.S. bank stocks might welcome end of QE

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U.S. bank stocks continue to rocket higher along with long term interest rates. The steepness of the U.S. yield curve – the difference between two-year and 30-year mortgage rates – remains the best indicator of short term American bank stock performance. The potential for reduced central bank monetary stimulus is a new, and potentially positive, wrinkle for investors in the sector.