### Comment:
Aren’t the banks the ones who do the borrowing from the fed? So wouldn’t higher interest rates categorically make their investments more expensive?

### REPLY:
Banks profit from rate arbitrage, borrow low lend high. Lower rates in this environment means lower rate spreads between short and long term, high and low risk. Aka less margin on every loan. If the rates stay high, long term it is good for banks.. but I doubt this is as direct a bet on a rate cut v no cut. I have done a pretty good job reading fed moves, but drop the ball on market reaction. Just looking for the most explicit no rate cut bet

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