Bank Deals Blog: Deposits Education and Strategies

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At the completion of its two-day FOMC meeting, the Fed issued a statement very similar to its March statement. The only change was in the economic overview. The April statement is a little more positive about the progress on the recovery. Also, the new statement is acknowledging a rise in inflation, but as expected, the Fed considers this a temporary situation. The following are excerpts of the two statements that show the changes:

Excerpt of the March FOMC statement:

Excerpt of the April FOMC statement:

The Fed also removed the word “considerable” in...

Last Saturday was the one-year anniversary of a little-known change in a Federal Reserve regulation that impacts savers. On April 24, 2020, the Fed announced a change to Regulation D that permits banks and credit unions to allow their customers to make more than six payments or withdrawals per month from their savings and money market accounts.

One thing that wasn’t apparent when the Fed first announced this change was if this change would be permanent or just temporary. A couple months after the announcement, the Fed updated its FAQs by...

At the completion of its two-day FOMC meeting, the Fed issued a statement very similar to its January statement. There was just a small change to the economic overview which acknowledged some progress:

As expected, there were no policy changes. The target federal funds rate remains near zero and the pace of asset purchases remains unchanged. No one dissented at today’s meeting.

The Fed also released updates to its Summary of Economic Projections (SEP) which includes federal funds rate forecasts that extend out through 2023. On the plus side, the economic forecasts...

There has been a massive amount of media coverage this week of stocks like GameStock that have surged to unbelievable price levels as small traders organized via Reddit attempt to profit from short selling done by hedge funds. Early in the week, it appeared the small traders were winning, but then on Wednesday, brokerage firms like Robinhood restricted access to these stocks. Almost everyone seems to be alleging that these brokerage firms have colluded with the hedge funds so that the hedge funds continue to win at the expense of...

At the completion of its two-day FOMC meeting, the Fed issued a statement very similar to its December statement. The only change was an acknowledgment of the hit the economy has taken in the last two months from the resurgence of the pandemic and acknowledgment that vaccination progress will be an important factor in how the economy progresses. There was no change in the Fed’s forward guidance on rates or asset purchases. The statement language remains the same as December's language which means that it’s very likely that it will...

At the completion of its two-day FOMC meeting, the Fed issued a statement very similar to its November statement. The only change was more details in the forward guidance of asset purchases. The composition of the asset purchases didn’t change. Some economists had expected the Fed to shift its purchases to longer-term maturities.

The Fed also released updates to its Summary of Economic Projections (SEP) which includes federal funds rate forecasts that extend out through 2023. On the plus side, the economic forecasts were upgraded which indicates more optimism for the...