Guest Post: Financial Markets and Economic Update by Dorothy Jaworski
Jeff For Banks
FEBRUARY 1, 2019
Indeed, banks generally pull back on lending if longer-term loan rates are less than their cost of funds, which are generally based on shorter-term rates. A tightening campaign that started in December, 2015 and has totaled 2.25% has basically offset the boost from tax cuts and the tightening also succeeded in flattening the yield curve.
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