U.S. bank deposits fall for the first time since 1940s

[rangerrebew]

PERSONAL FINANCE Updated on April 4, 2023 12:24pm EDT
U.S. bank deposits fall for the first time since 1940s
Recent banking closures have triggered fears of a recession in 2023
 
By Javier Simon Sponsored by Credible - which is majority owned by Fox Corporation. Credible is solely responsible for the services it provides.

U.S. bank deposits have been positive year-over year between 1948 and 2021.
Total U.S. bank deposits fell year-over-year in 2022 for the first time since 1948, according to data released by the Federal Deposit Insurance Corporation (FDIC). Bank deposits dropped to $19.2 trillion. The plunge follows a year marked by high inflation and rising interest rates – a trend that persists today.


In fact, the Federal Reserve in its last meeting raised interest rates by 25 basis points, putting the federal funds rate range at 4.75% to 5%, the highest it has been in 15 years. The central bank’s move came as a surprise to many economists including those at Goldman Sachs who predicted the Fed would pause its aggressive monetary policy following the collapse of Silicon Valley Bank (SBV) and Signature Bank. Those closures ushered in fears of a banking industry collapse and even recession.

https://www.foxbusiness.com/personal-finance/bank-deposits-fall?dicbo=v2-LoZmVEr

[Hoodat]

If the FED called a halt to the 'printing of the money', you would see the natural market demand for dollars take over and savings rates rise.  Big banks don't need savings investors because they get all the cash they could possibly want from the FED at ridiculously low rates.