State of the State Mid-Year 2024: Banks enjoying stable interest rates, ready when changes come

by Steve Brawner (BRAWNERSTEVE@MAC.COM)

Arkansas banks have been catching their breath as interest rates have remained stable for a year. Now, they are preparing for future rate changes that might occur. In fact, the Federal Reserve hinted July 31 at a slight rate decrease.

Brad Chambless, CEO of Farmers and Merchants Bank and chairman of the Arkansas Bankers Association, said banks couldn’t respond quickly enough to the Federal Open Market Committee increasing the federal funds rate by 5.25 percentage points over 18 months.

But, the Fed’s keeping the rate steady at about 5.4% since July 27, 2023, has given banks time to adjust their assets and liabilities.

State of the State Mid-Year 2024: Banks enjoying stable interest rates, ready when changes come