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But market is not economy.

• gruez 5y ago
  It trickles down. If the banks knew the interest rates are going to rise at the next fed meeting, they're not going to wait until the announcement to raise their rates. That means the effect of a rate increase is felt way ahead of it being announced.
  • riku_iki 5y ago
    > they're not going to wait until the announcement to raise their rates they will do what market will allow them to do. One bank can raise rates, but others won't, they will secure pre-hike loans, and win customers because of lower rates. Also, I am not sure if commenter above referred on loan rates market or maybe stock market..