Hidden Rates Affecting the Economy
Deposits now act like bonds. Deposit rates are changing like bond rates.
All deposit rates are falling and have for much of 2019.
Why can’t the Fed see this?
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Why the Fed & Fed Supporters Have It Wrong
Lake Forest, IL (September 17, 2019) When the government controlled interest rates on deposits from the Great Depression until 1988, they would change once every couple of years. Not anymore!
The deposit rate market is active and changes often,” notes Michael Moebs, Economist & CEO of Moebs Services, an economic research firm that just completed an extensive study of deposit rate changes.
“A key result of this Deposit Rate Change Study,” says Moebs, “is the lack of recognition of how depositories are now playing an important role in the economy and influencing whether or not the U.S. is headed toward recession.” READ FULL ARTICLE
Written By: m.moebs
Date Posted: 9/17/2019
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