It also generally means higher interest rates on loans, which is good for a bank’s bottom line. The United States has gone into recession, Federal Reserve-managed prime interest rates dropped to the 0%-0.25% range, and millions of people were losing their jobs and not spending their money. As we head toward a new year, there have been some recent positive signs for the economy that could bode well for banks, including the fifth-largest bank in the country, U.S. Bancorp.
