Chris Acker

Feb 7, 2024 | kansascityfed.org | W. Blake Marsh |Padma Sharma |Chris Acker

Subscribe Share Download Article Over the past year, banks continued to experience deposit outflows. First, monetary policy actions increased short-term interest rates, which enticed many depositors to seek more profitable investment opportunities. Second, banking stress episodes led some large depositors to question the safety of bank deposits and seek alternatives. In response, banks raised deposit rates to retain their core funding.