There's been one long-lasting impact from the crisis is suppressed interest rates.
American savers have lost $500 billion to $600 billion in interest payments on bank accounts and money market funds thanks to the Federal Reserve's post financial crisis policies, according to Wells Fargo analyst Mike Mayo.
As the CEOs of several of the biggest U.S. banks gather in Washington to testify before the Democrat-led House Financial Services Committee, Mayo pointed out that one long-lasting impact from the crisis — caused in part by irresponsible bank behavior — is suppressed interest rates. Rates on about $6.6 trillion in interest bearing accounts would have been at least 100 basis points higher over the past decade, according to the note.
The Fed cut its benchmark interest rate to a low target range of 0% to 0.25% during the crisis in 2009. It has since raised rates nine times to the current 2.5%. The central bank kept that rate the same last month on fears hiking again could tip the economy into a recession.
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