The Fed Just Dropped the Word “Patient” from its Release

    

The Fed just dropped the word “patient” from its release, which opens the door to a possible if not likely June interest-rate increase. For quite a while, we’ve been saying that it is not a question of whether rates go up, it is just a matter of when and by how much.

yellenclockAs a promotional piece last year, we sent out “interest-rate countdown clocks”. We pre-set the clock alarms to go off during the June 2015 FOMC meeting. But we know that some people have radically different predictions and that some geographies face unique headwinds. So we also included a note “in case you think that’s too soon, here are the directions on how you can reset the timer to your own prediction.”

We know for a fact that the day they start to tick up, US deposits managers will have to get very active very quickly, that there is a lot at stake, and that Nomis can help banks thrive in the new rising-rate environment.

But we also know that our software can help (and indeed has helped banks) in flat-rate environments. We have even dedicated a session at the upcoming Nomis Forum 2015 to address this specifically:

The Contrarian: What if Rates Don’t Go Up Any Time Soon?

Nick Young, Nomis Principal Consultant:

As the world waited for interest rates to tick up, the Bank of Canada fooled everyone by dropping rates in mid-January. How do you improve pricing in a flat and low-rate environment? Nick and Adam will show how a bank equipped with advanced pricing software could have made re-pricing decisions in response and describe how an oligopolistic market and low-rate environment combine to create a dog-eat-dog mentality. Nick will join Adam in this unique, but valuable, presentation.
For more information: www.nomisforum.com (the special hotel room rate expires Friday, so register today!.

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