Bank rate investors see their fortunes once again hanging in the balance as the economy threatens to fall back into a recession.
Many key economic indicators point to just that scenario. A big one came out on Tuesday, when the Conference Board revealed that Americans are losing faith in government efforts to steer the economy to deeper, calmer waters. The Board’s Consumer Confidence index plummeted 10 points — from 62.7 in May down to 52.9 in June.
That number signals Americans are retrenching in the face of yet more economic uncertainty, and probably won’t be spending the amount of money needed to lift the economy.
Another key indicator pointing southward are Treasury Prices. The benchmark 10-year Treasury Note fell below 3% for the first time since April 2009. When the 10-year note falls like that, it usually portends trouble. “Treasury rates this low typically signal a real slowdown in economic activity, or even a recession," Peter Cardillo, chief market strategist at Avalon Partners, told CNN on Tuesday. "But I think this is a heightened fear factor and a flight to quality as opposed to any real economic meltdown."
Either way, bank rate investors are fighting for every basis point they can get. All the more reason to keep looking for the best bank deals out there on the marketplace.
That’s what we’re all about here at BankingMyWay every Wednesday — let’s take a look and see what’s out there this week.