Could it be? Interest rate hikes may be on the way

We've all heard the rumors - interest rates will go up in 2013...no, make that 2014...first half of 2015...

However, this time, there might be some truth to the long-promised rate hikes.

A recent Reuters article quoted Federal Reserve Governor Jerome Powell as saying that, based on a continually improving economy, he was looking to raise interest rates twice this year: initially in September, and once more in December.

Powell is one of five Fed officials making a dual-hike projection, adding more substance to the possibility that rates will actually increase.

An interesting offshoot of the rate discussions is pertinent to bank leadership and shareholders alike - namely, which institutions are most likely to benefit when rates increase? What factors position some banks to benefit in areas such as deposit pricing while others struggle to compete in the new normalized rate environment?

If you're interested in reading more, check out a recent FICO executive brief (link below) on deposit pricing management. And please don't hesitate to share your feedback and thoughts on these topics.

https://www.fico.com/en/latest-thinking/white-papers/the-new-normalization-three-keys-to-gaining-an-edge-in-deposit-pricing