High Interest Rates Don’t Mean Fatter ProfitsRupert Hargreaves
Higher interest rates Don't Mean Fatter Profits
It is generally believed that higher interest rates are better for banks and, as a result, as the Federal Reserve tightens monetary policy, banks will be better off because their net interest margins (an indicator of the difference between what banks bring in and what they pay out in interest) will also increase. There has been plenty of comment and analysis on this theme over the past 12 months as the Fed becomes more hawkish. One estimate highlighted in the International Business Times, released last September before the Fed's . . .
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