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Pod 22: 5.0% CPI, the Macro + banking landscape, rate hikes or pauses, the federal reserve's decisions and inflation

Unusual Whales

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The Negative Interest Rate Margin Squeeze

There's a narrative that as the Fed hikes rates, people will demand higher deposit rates. But banks don't solely compete for deposits on the basis of interest rates. Banks today are encouraged to use retail depositors as funding. So I don't really see this an upcoming net interest rate margin squeeze.

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