Franklin BSP Realty Trust (FBRT), Coastal Financial (CCB) fall as Fed cut hopes fade

Franklin BSP Realty Trust and Coastal Financial shares declined in afternoon trading on May 14, 2026, after major Wall Street banks pushed back forecasts for Federal Reserve interest-rate cuts, raising concerns that higher rates could weigh on lending and real estate finance stocks. Goldman Sachs and Bank of America reportedly shifted expected Fed easing to December 2026 from September 2026 after stronger jobs and inflation data. Treasury yields rose as investors reassessed the rate outlook, with Bank of America analysts warning that the risk of another Fed rate increase may be underpriced. Coastal Financial (CCB) traded at $70.99, down 37.3% year to date and 40.3% below its 52-week high of $118.97 reached in January 2026. The stock has recorded 14 moves of more than 5% over the past year, underscoring its volatility. Banks face a mixed rate backdrop: higher rates can support net interest margins but may curb loan demand and raise credit risk.