US banks made $1tn windfall profit by failing to pass on to savers the higher interest rates that were kept in place by the Federal Reserve for the past two and half years. Lenders earned higher yields for their deposits at the Fed but kept rates lower for many savers, according the review of Federal Deposit Insurance Corporation data. The boost to the country’s in excess of 4, 000 banks has helped increase their profit margin. While rates on some savings accounts were raised in line with the Fed’s target of more than 5 per cent, the majority of depositors, … Continue reading US banks made $1tn windfall from Fed’s higher rates