What the Fed’s rate hike means for one community bank

May 5, 2022
Mortgage rates are rising, but deposit rates will lag, says Laurie Stewart, president of Sound Community Bank in Seattle.
Laurie Stewart, the head of Sound Community Bank in Seattle, says pressures to hold more capital will "impact our ability to serve clients and to be investable."
Courtesy Sound Community Bank

Why Fed might not be too upset when stocks fall

May 4, 2022
All major indices are down for the year. That's probably something the Fed isn't all that mad about.
If the value of people's stock investments go down, they may be less inclined to spend — at least a little.
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Anticipated Fed interest rate hike already being felt

May 3, 2022
Mortgage rates, for example, probably already have the Fed hikes built in.
The Federal Reserve is planning to raise interest rates this week. If you're trying to take out a mortgage, chances are you're already feeling the effects.
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The Federal Reserve plans to shrink its balance sheet. Here's what that means.

May 3, 2022
The strategy is aimed at tightening credit and easing inflation. Purdue's Cathy Zhang worries about the effects on financial markets.
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Rising interest rates likely to make companies think twice before borrowing

May 2, 2022
Many have been on a borrowing spree through the past two years of low rates.
As the Federal Reserve prepares to raise interest rates again, businesses' borrowing habits are set to change.
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For public good, not for profit.

When it comes to inflation measures, the Federal Reserve prefers the PCE

Apr 29, 2022
For monetary officials, the personal consumption expenditures gauge beats the CPI. A trip to the grocery store helps explain why.
When pressed about fighting inflation, survey participants say they want to hold the line on prices for essentials, says Eric Plutzer of the McCourtney Institute for Democracy. But "those policies require the Congress and the president to work together."
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Can the Fed lower inflation without getting the economy into a recession?

"A look at the record shows that the Fed often stumbles in its efforts to save the day," says Ben White, chief economic correspondent at Politico.
Recessions have followed many of the Federal Reserve's past interest rate hikes.
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