Interest rates are expected to rise in 2022, which will be positive for bank stocks. With that in mind, today I'll analyze and compare JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corporation (NYSE:BAC) to determine which stock is currently a better buy.Jerome Powell, Federal Reserve Chief, said on Tuesday that the Fed could react more quickly to its low-interest-rate policies to combat high inflation. The Consumer Price Index (CPI) stood at 6.2% in October 2021 in the U.S., the highest level in over three decades. In addition, the U.S. Central bank could accelerate bond tapering, allowing it to raise its key rate as early as the first half of 2022. A higher Fed rate should boost financial companies' interest revenue.
The global financial services industry, which is represented by the Financial Select Sector SPDR ETF (NYSE:XLF), has advanced about 31.1% since the beginning of the year, outperforming the SPDR S&P 500 Trust ETF (SPY), which has gained 22.3% over the same period.
With this in mind, let’s analyze and compare two bank stocks: JPMorgan Chase & Co. (JPM) and Bank of America Corporation (BAC), to determine which is a better investment right now.