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Posts tagged with "Federal Reserve"

12/19/2019

Interest rates and rate floors: survive and thrive in 2020

Last year, when rates were rising, Deluxe warned that banks should learn from the 2008 financial crisis that rate cuts are not always predictable, and can be devastating to earnings. And at the beginning of this year, when interest rates were fluctuating unpredictably, Deluxe wrote about structural factors placing pressure on banks’ margins. In both…

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11/15/2019

Another drop in interest rates – is the end nigh?

Around Halloween, perhaps to scare all of the bankers out there, the Federal Reserve dropped rates again, this time by 25 basis points to a range of 1.5% to 1.75%. The widely expected move was the third such drop in as many months. With little wiggle-room remaining this looks like the last drop for a…

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08/19/2019

Rates are falling. Margins Are Shrinking. Why, and What Next?

Last month we wrote about an upcoming cut in interest rates. At the time, we wrote about what financial institutions—especially smaller institutions—should expect. A couple of days later the Federal Reserve announced the first target Fed Funds rate cut in a decade. So now we have some clarity—what can we learn? Managing rates is a…

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07/30/2019

Interest rates, market instability, and what it all means

“Turbulent” is probably the safest way to describe the interest rate landscape for financial institutions in 2019. Opinions about upcoming rate movements have taken a rollercoaster ride over the past several months. This is based on comments from Federal Reserve Chairman Jerome Powell, and the Federal Open Market Committee meeting again this week. We will…

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04/22/2019

The yield curve is inverting. That’s signaled recession since the ’60s. Now what?

Can we predict the future by looking at the past? When you’re talking about finance, the answer may well be yes. Every recession we’ve had since the 1960s occurred about a year after an inversion of the Treasury yield curve. And, it looks like that’s starting to happen right now. But it’s not time to…

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01/29/2019

Hidden Nuggets in the Fed’s Latest Payments Research

Over the holiday season the Federal Reserve released its annual update on US non-cash payments trends. A few months earlier it issued an inaugural study on the incidence of fraud in US payments. Both reports contain insights that deserve broader exposure, and several reflect data-driven confirmation of trends that industry observers already suspected. Others, however,…

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11/21/2018

The Fed’s Fraud Study Reveals the Expected and Unexpected

The high-level trends in payment fraud are easy enough for industry professionals to surmise. Card fraud- both credit and debit- is on the rise, particularly in the fast-growing e-commerce channel. Nonetheless, the Federal Reserve’s newly issued fraud study is packed with valuable information. Its data-driven analysis confirms and quantifies some commonly held beliefs, and uncovers…

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