With the Federal Open Market Committee meeting yesterday, ABA President and CEO Frank Keating appeared on Reuters TV to discuss interest rates. He highlighted the importance of rates returning to normal at some point, noting that “abnormally low rates can have adverse consequences, especially for savers that may seek out investments that might be too risky for them in pursuit of a higher return.”
Keating also emphasized that banks are carefully managing risks related to the Fed’s rate decisions, which he expected to be slow and steady once rates begin to rise. Watch the interview.
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