Financials Up on Fed Optimism -- Financials Roundup

Shares of banks and other financial institutions rose amid optimism ahead of the Federal Reserve statement.

Investors have priced in a modest 25-basis-point rate increase, and any other move would likely cause a shock, said one money manager.

"I think the big risk there is that we overdo it on raising interest rates and the economy goes into a much more severe deflationary environment," said Eric Marshall, president of Dallas mutual-fund firm Hodges Capital.

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(END) Dow Jones Newswires

01-31-23 1706ET