Deposit Betas: Looking into the Future

The Baker Group's Pen and pad used for writing The Baker Group's articles

Over the last two years, the banking industry has experienced massive deposit growth, which flooded banks with excess liquidity. Most of the deposits flowed in by way of non-maturity deposit accounts, with a good portion of those funds going into noninterest-bearing accounts. These low cost or “free” deposits helped propel the banking industry’s cost of […]

Baker Market Update – wk220311

The Baker Group - Baker Market Update Image

Markets saw another week of volatility as the conflict in Ukraine continued without a peaceful resolution. A possible bit of good news coming out the conflict this morning as Russian President Vladmir Putin stated in regard to ongoing negotiations with Ukraine, “there are certain positive shifts, negotiators on our side tell me.” I imagine most […]

Baker Market Update – wk220211

The Baker Group - Baker Market Update Image

The Fed has always said they will be data driven. If they needed more ammunition before they decide to raise interest rates for the first time since December 2018, they got it this week. Yesterday, the headline consumer price index increased 7.5% compared with a year ago. Core CPI, which strips out volatile food and […]

Baker Market Update – wk220121

The Baker Group - Baker Market Update Image

Happy Friday everyone! I hope everyone is safe, healthy and warm on this cold January day. With the Monday Holiday to celebrate Dr. Martin Luther King Jr., this week’s economic release calendar was rather light. On Wednesday, housing starts data for December was released. Privately built housing starts were at an annual rate of 1.7 […]

Baker Market Update – wk211223

The Baker Group - Baker Market Update Image

Happy Christmas Eve… Eve to all! As our offices will be closed tomorrow for actual Christmas Eve, the weekly Baker Market update finds you a day early. There were several economic releases this morning, but up first was the monthly release of the Federal Reserve’s preferred measure of the inflation, Personal Consumption Expenditures (PCE). PCE […]

Baker Market Update – wk211210

The Baker Group - Baker Market Update Image

Transitory or not transitory…that is the question. Less than two weeks after Federal Reserve Chairman Jerome Powell retired the use of the word transitory when describing inflation, this morning’s consumer price index (CPI) data accelerated at its fastest pace since 1982. The CPI, which measures the cost of a wide-ranging basket of goods and services, […]

Baker Market Update – wk211112

The Baker Group - Baker Market Update Image

Happy Friday wherever you may be reading this today! Veteran’s Day was yesterday, but I wanted to start off by saying Happy Veteran’s Day and we thank you for your service. This week’s economic calendar release was rather light, given the fact that no economic releases came out yesterday during the holiday. The major market […]

Baker Market Update – wk211001

The Baker Group - Baker Market Update Image

Wake me up when September ends… it is officially the start of October. As we welcome a new month, let’s take a look at the economic and market happenings from this week. This morning brought us the core personal consumption expenditures price index, which excludes food and energy costs and is the Federal Reserve’s preferred […]

Baker Market Update – wk210910

The Baker Group - Baker Market Update Image

Even though football weather isn’t quite here yet in this part of the country, I think we can all say that football is officially back! Tough loss for the Cowboys last night as Tom “Father Time” Brady got the ball back with too much time on the clock. This week brought a relatively low number […]

Checking In on the Banking Industry

The Baker Group's Pen and pad used for writing The Baker Group's articles

2020 was a year of challenges in many aspects of life, business, and the economy. The start of 2021 brought a close to a tumultuous year and opened the door to a year of economic recovery and a hope for more normal times. In March 2020, the banking industry was rocked when the Fed funds […]

Baker Market Update – wk210730

The Baker Group - Baker Market Update Image

As we close another hot July week, eyes were on this morning’s release of an inflation indicator the Federal Reserve uses as its key guide, the personal consumption expenditures price index. The core personal expenditures price index, which excludes food and energy, increased 3.5% year-over-year, slightly below expectations of 3.6%. On a month over month […]

Baker Market Update – wk210709

The Baker Group - Baker Market Update Image

The 4th of July Holiday on Sunday allowed us to ease into the week by observing America’s Birthday once more on Monday. This also allowed for this week to be a lighter week of economic releases. The week began with a disappointing Institution for Supply Management (ISM) number which fell to 60.1% in June, down […]

Baker Market Update – wk210618

The Baker Group - Baker Market Update Image

As we close out another hot and humid week in many parts of the country, all eyes were on the Federal Reserve’s June meeting that concluded earlier this week. Was this the meeting where the Fed changed from “thinking about thinking about raising rates” to “thinking about raising rates?” As expected, the policymakers at the […]

Baker Market Update – wk210604

The Baker Group - Baker Market Update Image

Happy Friday to everyone! As our friend Lester rode off into the sunset last Friday (I assume on a horse named Bullet), I will be with you for this week’s economic review. Let’s first discuss the movement of Dogecoin and its potential effect on the Fed’s outlook for interest rates…kidding! All eyes were on the […]

Riding the Liquidity Waves

The Baker Group's Pen and pad used for writing The Baker Group's articles

Before the COVID-19 pandemic took hold on the world and the United States, many community bankers watched the slow fall of their on-balance sheet liquidity. Throughout the last decade of economic expansion, many community banks’ loan demand consistently outpaced deposit growth. At the beginning of 2020, bankers’ expectations for the year were for more of […]