When rates rise: from the Fed to a bank run
Process map by Brian. 8 steps, 1 layer. Tags: economy, finance, news, combined.
- The Fed: Inflation is high, so raise rates
- Banks: Older bonds lose value
- Banks: Is a bank exposed to those losses?
- Banks: A bank run can follow
- Savers: Savings pay more and loans cost more
- The Fed: Is inflation coming down?
- The Fed: Hold or cut the rates
- Banks: Business as usual