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2025-07-30 22:04:13
[Fed Decision Imminent: Regional Banks Hidden 14% Discount, or a Premonition of Unusual Movement?] ⑴ The Fed's policy announcement will be released at 2:00 AM Beijing time on Thursday, and the market is expected to experience significant volatility. ⑵ Goldman Sachs strategist John Marshall reminds investors to closely monitor the regional bank sector. ⑶ Data shows that US bank ETFs (KBE, KRE) have experienced significant volatility on Fed interest rate meetings since 2023. ⑷ Specifically, the S&P Regional Bank ETF (KRE) has experienced an average daily volatility of 2.5% on Fed interest rate meetings over the past two years. ⑸ Marshall predicts that KRE may also experience significant volatility after tonight's decision. ⑹ Although US financial stocks have rebounded since their April lows, regional banks have failed to keep pace with their normal correlation with macro assets. ⑺ Goldman Sachs research finds that KRE's current valuation is significantly discounted by 14% relative to its normal level before the Fed meeting.
