Correspondent Blog

Many economists and analysts predict that the Federal Reserve and other central banks will start easing monetary policy in 2024.  Many bankers and borrowers are convinced that a recession is imminent despite no clear evidence for such a conclusion.  How should lenders discuss interest rates in 2024, and what advice should relationship managers provide their…

The bigger risk to community banks’ business model is not a moderate recession induced by aggressive interest rate increases by the Federal Reserve.  Instead, the more painful scenario for the banking industry is the following: no recession, short-term interest rates holding steady in anticipation of inflation reaching target rates, and a prolonged inverted yield curve….