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I've often wondered why savings rates at US banks are below inflation. In my mind the only logical explanation was that they simply had _too much_ money. Are y

I've often wondered why savings rates at US banks are below inflation. In my mind the only logical explanation was that they simply had _too much_ money. Are you saying that banks are essentially loaning out Federal Reserve funds at a higher rate and deposits aren't a source of cash to loan?

mvc 4y ago
They are simply numbers in a database. http://bilbo.economicoutlook.net/blog/?p=14620 http://bilbo.economicoutlook.net/blog/?p=14620