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Why Higher Interest Rates Aren’t Helping Your Savings Account

"Federal Reserve officials raised the benchmark lending rate to a range of 1 percent to 1.25 percent on Wednesday, the central bank’s third such move in six months. In the hours since the decision was announced, U.S. banks including Citigroup Inc., U.S. Bancorp and SunTrust Banks Inc. announced that they’ll pass on the higher interest rates to borrowers, without disclosing plans to provide better rates for deposit customers."

"After years of stubbornly low interest rates, U.S. banks have been slow to increase offers for deposit accounts. They are seeking to benefit from a fatter margin between what they charge for loans and what they pay out to customers who provide the funds."

Federal Fund Target Rates, June 14, 2011-17

The strengthening economy means the federal reserve has increased their target rate by a quarter point, which means they will take steps to tighten the money supply and force banks to lend at a higher rate. This is good news for people with savings accounts and bad news for people who are borrowing money. More about how the Fed sets market rates: https://www.thebalance.com/how-does-the-fed-raise-or-lower-interest-rates-3306127

Data Sources:
Federal Reserve issues FOMC statement, 6/14/17. https://www.federalreserve.gov/newsevents/pressreleases/monetary20170614a.htm

Board of Governors of the Federal Reserve System (US), Federal Funds Target Range - Lower Limit [DFEDTARL], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DFEDTARL, June 14, 2017.

Board of Governors of the Federal Reserve System (US), Federal Funds Target Range - Upper Limit [DFEDTARU], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DFEDTARU, June 14, 2017.

Trump Administration Files Motion Aimed At Controlling Consumer Protection Agency

"The Trump administration has gone to court to try to bring the Consumer Financial Protection Bureau under its control. The bureau is an executive branch entity, but the president doesn't have direct control over the six-year-old agency.

The Justice Department filed a brief with a federal appeals court in Washington on Friday, making the case that the structure of the agency violates the Constitution."

Why do we no longer use $1,000 bills?

I wish they would do away with the $100 bill. I occasionally get them at work, and they are a pain to deal with. 90% of currency I keep in my wallet is $1 bills, because they are most useful. I occassionally have a $5 or $10, or maybe a few $20 when i am on a road trip, but these days plastic is much easier, as you don't deal with change.