Aaron Back
speaker
279 appearances
6 recordings
1 series
first heard Jul 2018
last heard Jul 2019
Aaron Back’s voice in public audio — every appearance, attributed to the second.
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Appearances
It takes a while, though, for those Federal Reserve rate hikes to feed through to the consumer.
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Partially, that's just because the Federal Reserve, as it hikes, the banks take a while to respond on purpose.
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They're not eager to pay out money to the depositors.
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It costs them money.
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But as rates move higher and higher, the pressure for them to pay out grows.
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And I think we're really at an inflection point now where people are going to start seeing better deposit rates.
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There's a lot of debate as to where exactly that turning point is.
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If you look at past cycles, it was a little bit higher.
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But we were also starting from a higher point in past cycles.
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This time, we were starting at zero.
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So the exact number, we can debate.
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But what's clear is that the response is accelerating.
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So banks' deposit costs, about 44% of the increase in rates was passed on to depositors last quarter.
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And that's up from only 20-some percent in previous quarters.
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So clearly, banks are now passing on more of those hikes to consumers.
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And we're finally moving out of the days where consumers are used to earning nothing.
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Absolutely.
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So one difference between this rate hike cycle and other rate hike cycles is that we were at zero for a decade this time.
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The other difference is that there's better technology.
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It's easier for you to move your money.
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Showing 201–220 of 279 · page 11 of 14
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