# Fed Rate Hike Boosts Bank of America

> Fed rate hike lifts Bank of America earnings but stock drops.
- Title: Fed Rate Hike Boosts Bank of America · 24/7 Wall St.
- Summary: Fed rate hike lifts Bank of America earnings but stock drops. Bank of America's earnings benefit from a hawkish Fed but stock fell as investors priced in…
- Keywords: fed, bank of america, interest rates, net interest income, credit card, treasury yields, bacs, corporate earnings, Rate, Hike, Boosts, Bank
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/09/23/a-hawkish-fed-is-bad-news-for-borrowers-its-good-news-for-this-bank
- Author: Omor Ibne Ehsan
- Published: 2026-09-23T17:42:01+00:00
- Read time: 1 min
- Topics: fed, bank of america, interest rates, net interest income, credit card, treasury yields, bacs, corporate earnings
## Fed Rate Hike
The Federal Reserve raised its target range on September 16, 2026, lifting the upper bound to 4.00% from 3.75%.
## Bank of America Stock Drop
Bank of America closed at $56.22, down 3% on the session and 8.43% over the past month.
## Asset-Sensitive Balance Sheet
Bank of America runs one of the more asset-sensitive balance sheets among megabanks with a +100 bps parallel shift adding $1.0 billion in net interest income.
## Credit Card APR
The average credit card APR sits at 20.94%, inside what the Fed calls record territory.
## Net Interest Income
Second-quarter net interest income was $16.00 billion, up 9% year over year with full-year 2026 guidance at the high end of 6% to 8%.
## Deposit Beta
BAC’s consumer base has $957 billion in deposits paying just 48 basis points with sticky retail checking cheaper than institutional cash.
## Credit Card Performance
The credit-card net charge-off rate improved to 3.55% from 3.82% a year earlier with delinquency easing to 2.85%.
## Bull and Bear Case
Bull case: asset-sensitive balance sheet, securities repricing upward, guidance at high end, and $2.02 trillion in deposits. Bear case: credit deterioration, deposit costs, and CRE book risks.
## Key takeaway

Bank of America's earnings benefit from a hawkish Fed but stock fell as investors priced in credit risks.