Fed’s Interest Rate Cuts Hurt Local Banks

by Hans Bader on April 7, 2008

In an effort to help borrowers and some overextended big banks, the Federal Reserve cut interest rates to very low levels, triggering a fall in the dollar, reduced investment in the U.S., and inflationary pressures.   According to the Washington Post, the rate cuts are also hurting many “smaller banks,” including ”regional and local banks.”

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