Ag Bankers Expect More Interest Rate Increases

Economists with the American Bankers Association expect several more years of gradual interest rate hikes from the Federal Reserve.  ABA Vice President Brittney Kleinpaste anticipates three or four bumps in 2019.


“We expect that to continue into 2022, just, the Fed to continue to push the economy as it improves to get us back to that normalization level.  So far, the Fed has moved about one-quarter-point each time, and there’s no indication to expect something differently, but, they always put that caveat that they’ll react to the market.  So, if the market demands something quicker, that’s what they’re saving the freedom to move, but we don’t see any reason why they would deviate from what they’ve been doing.”


Ag Bankers add they will be especially mindful of helping younger farmers, who have only experienced cheap money, to understand the implications of normalizing interest rates.



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