Ask Terry Questions Interest Rates

Interest Rates

By Terry Savage on December 14, 2022 | Chicken Money

Isn’t the Fed just making banks more wealthy by raising interest rates?

Terry Says

Not if people decide to move their money to Treasury bills instead of settling for the low rates that banks are paying depositors! Read this: https://www.terrysavage.com/t-bills-beat-cds/

And banks do have something to worry about. If high rates cause a recession, people may lose jobs and default on their loans and mortgages!

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