Why Shares of American Express Are Down This Week
This week, shares of the payments and credit card company American Express (NYSE: AXP) traded roughly 10% lower as of 1:28 p.m. Thursday, as the market digested the Federal Reserve's recent interest rate hike and the economic outlook.
The Fed significantly raised its benchmark overnight lending rate by 0.75% on Wednesday. A hotter-than-expected inflation report for May forced the agency to raise interest rates more rapidly than initially expected in its bid to bring down consumer prices, which have surged this year.
Revolving debt, which is mostly credit card debt, continued to grow nicely in April, according to Fed data, but there are signs that consumer spending is starting to slow, as inflation persists and the cost of debt climbs.
Source Fool.com
