I hope everyone is having a pleasant Easter weekend. Many banks released their first quarter earnings this week. One thing in common reported by both the mega banks and the regional banks has been an increase in deposits. Also, many banks have been reporting weak loan demand. I'm afraid that won't help savers. With plenty of deposits and weak loan demand, banks won't have much incentive to raise deposit rates.
The Fed's monetary policy isn't helping savers either, and we'll hear the latest news from the Fed next Wednesday after their third FOMC meeting of the year. Before the Fed starts to hike rates, they will take several other steps that will slowly reverse this super-easy monetary policy. The Fed's statement after the meeting may give hints about the timeline of those steps. We may also hear some clues when Bernanke gives the Fed's first news conference after the meeting.
The market's expectation for rate hikes in December and early next year went down a little this week. Details can be seen in the following summary which is based on bond rate data and the CME Group FedWatch
沒有留言:
張貼留言