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Fed says no changes, But, Banks are starting to pay more
Old 09-19-2014, 11:07 PM   #1
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Fed says no changes, But, Banks are starting to pay more

The fed said a lot of nothing. Cutting bond purchases of 10 Billion a month is not even a ripple on a lake filled with dollars.

Lately, most of the regional brick and mortar banks are advertising CD rates meeting the on-line banks, and those that don't advertise, are willing to match on-line rates for maturing CD's that will walk out the door.

Why only for the smaller , "Not to big to fail" banks ?. The big boys still pay zilch.
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Old 09-19-2014, 11:24 PM   #2
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The big money center banks can simply redeposit Fed funds with the Fed and safely earn small but easy interest. They have no need to attract more deposits.
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Old 09-20-2014, 06:41 AM   #3
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The big money center banks can simply redeposit Fed funds with the Fed and safely earn small but easy interest. They have no need to attract more deposits.
I think this has been true for some time so banks have no reason to be competitive, bad for savers good for the stock market.
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Old 09-24-2014, 02:01 PM   #4
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That said, the fed does not actually have total control over interest rates, there are market forces in effect that they influence.

So regardless of what they say, if interest rates start to rise in the market...interest rates are rising, with the same effect on bond values either way.
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