The Fed is finally cutting rates, but banks aren’t in the clear just yet
2024-10-11 09:25:57 source：CNBC
October 10, 2024
Falling interest rates are usually good news for banks, especially when the cuts aren’t a harbinger of recession.
That’s because lower rates will slow the migration of money that’s happened over the past two years as customers shifted cash out of checking accounts and into higher-yielding options like CDs and money market funds.
When the Federal Reserve cut its benchmark rate by half a percentage point last month, it signaled a turning point in its stewardship of the economy and telegraphed its intention to reduce rates by another 2 full percentage points, according to the Fed’s projections, boosting prospects for banks.
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https://www.cnbc.com/2024/10/10/fed-rate-cuts-boost-to-banks.html