Re:Joint Statement by the Department of the Treasury, Federa...
by greenyoda on Sunday March 12, 2023 @09:02PM
(#35129141)
> lower interest rates on accounts...
These days, banks need to be competitive with Treasury rates to get large deposits from informed investors. Anyone with a brokerage account can get a 5% interest rate today on short-term Treasury securities (risk-free if held to maturity, and exempt from state/local income tax).
So if banks start lowering rates on deposits, they may have a shortage of money for lending.
These days, banks need to be competitive with Treasury rates to get large deposits from informed investors. Anyone with a brokerage account can get a 5% interest rate today on short-term Treasury securities (risk-free if held to maturity, and exempt from state/local income tax).
So if banks start lowering rates on deposits, they may have a shortage of money for lending.