Deposit Rate Dynamics
Joe discusses the complexities of bank deposit rates, emphasizing the slow response to changes in the Fed's interest rates. He explains that banks possess significant pricing power due to limited competition and that the "deposit beta" tends to increase over the course of a tightening cycle. As banks compete for deposits, the pass-through effect of rate hikes can rise dramatically, illustrating a clear pattern in the relationship between monetary policy and deposit rates.In this clip
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Odd Lots
Why Interest Rates on Savings Accounts Are Still So Low
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