Bank deposits
Bank Concentration Undermined the Fed’s Monetary Policy During the Last Tightening Cycle
In new analysis, Madhav Parikh examines how competition among banks in the United States shapes the way monetary policy reaches depositors. Tracking U.S. banks from late 2021 through mid-2026, he finds that banks in more concentrated local markets repriced their deposit interest rates less than banks in competitive markets, both as the Fed raised rates and as it cut them.
