When the only way out is up

摘要

Over the past year, Federal Reserve monetary policy has kept the shortest-term rates at historically low levels. There are sound economic reasons for this strategy, including the encouragement of bank lending in an effort to put the ailing U.S. economy back on its feet. However, the decline in rates to the present level was not easy on many commercial banks. Their funding costs trailed the drop in variable lending rates, compressing profit margins.