The US Federal Reserve announced it will begin to reduce the amount of bonds it buys by ten billion dollars a month, beginning in January. The move signals the Fed is ready to reduce the money they have been injecting into the economy following the great recession. The Fed has been buying eighty five billion dollars in US Treasury bonds each month for several years. Curt Everson, President of the South Dakota Bankers Association, says it can take some time for signals from the Fed to spread out into the banking industry…
The Fed has kept interbank interest rates near zero for several years. Everson says despite that, profit margins for banks have also been very tight…
Everson says he doesn’t expect to see much change in consumer interest rates for a while…