Why is that important? Because the rate that banks are paying to good customers for overnight funds is directly influenced by the movement of the Fed Rate and for the first time in years, your overnight bank balances have the potential to earn significant income.
It is important to know what rate your bank is paying for the use of your county’s overnight balances. If you are not getting near 0.75 percent, you should ask your bank why.
Rates will likely continue to go much higher in the coming months. The Federal Reserve has strongly signaled that they will increase the rate by 0.50 percent in June and July, and as many times after that as it takes to curb inflation.
KACo wants you to have good, timely information as a means to earn a fair return on your county’s money. Watching the movements in the Fed rate will give you an idea of the return you should be receiving.
If you want more information, just call Grant Satterly, Lonnie Campbell or Kelly Collins Mittler at 502-223-7667 and they will be glad to help.
