"The time has come for policy to adjust," Fed Chair Jerome Powell declared last Friday in Jackson Hole. The question now is how much and how quickly the Fed lowers rates. Absent dramatic cuts, deposit costs are not likely to fall by much, though NIMs should improve as large pools of fixed-rate assets reprice higher, according to S&P. However, nearly 40% of respondents to IntraFi's most recent quarterly survey of bank execs said loan demand fell year-over-year. Either way, looser policy should translate to lower yields on money market funds and other short-term investments, making bank accounts relatively more attractive.
What are some key lessons you've learned during the hiking cycle? How will lower rates change your customer-acquisition strategy? Any thoughts or reflections here would be welcome.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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