Commercial Banks Taper Treasury Purchases | Joseph Wang & DC Analyst
Forward Guidance
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Bank Stocks Are Going to Get Wracked
When the Fed raises rates, it could actually potentially make the RRP go higher. By historical standards, banks net interest margins are still quite low. Banks have been flooded with deposits since 2020. Deposits have grown across the board by like 50%. So, and since there weren't really many high yielding opportunities during that time, much of that growth in deposits has been invested into fairly low yielding assets at the front end.
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