Fed Decision: 3 Stocks to Watch After Jerome Powell's Latest Move

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Stefon Walters, The Motley FoolSun, Sep 21, 2025, 3:30 PM 5 min readIn a much-awaited move, the Federal Reserve cut its key interest rate by 0.25 percentage points last week.Realty Income should benefit from the difference in its borrowing costs and how much it collects from tenants.Bank of America's net interest income will likely fall because it will receive less in interest income from loans.10 stocks we like better than Realty Income ›When inflation reached its highest levels in decades in 2022, the Federal Reserve began tackling the issue by raising interest rates. At its peak, the federal funds interest rate reached 5.5%, its highest level since 2001. On Sept. 17, the Fed cut the interest rate by 0.25 percentage points to a target of 4% to 4.25%.The rate cut didn't come as a surprise to most people, and there are thoughts that the Fed may cut rates once or twice again this year, per the latest "dot plot" (a chart showing where each Fed policymaker expects interest rates to be in the future).Interest rates have ramifications for the U.S. economy. Higher rates make borrowing more expensive, which aims to slow growth and cool inflation. Lower rates make borrowing cheaper, which helps business expansion and consumer spending. This will affect many businesses, but there are three in particular I want to keep an eye on.Image source: Getty Images.Realty Income (NYSE: O) is a real estate investment trust (REIT), meaning it pools investors' money to buy and manage income-producing real estate, then distributes most of the profits back to shareholders as dividends.It's the sixth-largest REIT in the world, with properties in nine countries worth around $61 billion in real estate value. Realty Income's business model is buying single-tenant properties and renting them out to tenants who are responsible for the rent, maintenance, and taxes.The recent and anticipated interest rate cuts will affect Realty Income's business by lowering its cost of capital, making it cheaper to borrow money for new acquisitions and refinancing its current loans. This increases the difference between the costs of financing properties and the income collected from tenants. This should be music to Realty Income investors' ears because it supports growth and dividend stability.O Dividend Yield data by YChartsRealty Income already has an attractive dividend, but lower rates can make its yield look more attractive relative to bonds, potentially drawing in more investors.Bank of America (NYSE: BAC) is one of the world's largest banks, operating in 36 countries (including the U.S.). Bank of America operates in virtually all facets of the finance world, but its main income source is net interest income (NII).Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,693.75 +29.39 (+0.44%)Dow 3046,381.54 +66.27 (+0.14%)Nasdaq22,788.98 +157.50 (+0.70%)Russell 20002,463.34 +14.57 (+0.59%)VIX16.10 +0.65 (+4.21%)Gold3,781.20 +75.40 (+2.03%)PortfolioSign in to access your portfolioSign inTop gainersMTSR Metsera, Inc. 53.58 +20.26 (+60.80%)DGNX Diginex Limited 17.75 +4.15 (+30.51%)QMMM QMMM Holdings Limited 105.90 +23.06 (+27.84%)GGAL Grupo Financiero Galicia S.A. 32.03 +5.58 (+21.10%)BBAR Banco BBVA Argentina S.A. 9.85 +1.66 (+20.27%)Top losersCOMP Compass, Inc. 7.92 -1.48 (-15.74%)OPEN Opendoor Technologies Inc. 8.38 -1.19 (-12.43%)QUBT Quantum Computing Inc. 20.21 -3.06 (-13.15%)PTRN Pattern Group Inc. 14.00 -1.63 (-10.43%)BMNR Bitmine Immersion Technologies, Inc. 55.10 -6.19 (-10.10%)Most activeNVDA NVIDIA Corporation 183.61 +7.01 (+3.97%)OPEN Opendoor Technologies Inc. 8.38 -1.19 (-12.43%)SNAP Snap Inc. 8.53 +0.37 (+4.53%)PLUG Plug Power Inc. 2.6500 +0.4700 (+21.56%)BBAI BigBear.ai Holdings, Inc. 7.08 +0.23 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNVDA NVIDIA Corporation 183.61 +7.01 (+3.97%)RIVN Rivian Automotive, Inc. 15.24 +0.86 (+5.98%)APLD Applied Digital Corporation 24.45 +3.97 (+19.38%)MTSR Metsera, Inc. 53.58 +20.26 (+60.80%)AMAT Applied Materials, Inc. 200.52 +10.42 (+5.48%)Top economic events