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US large time deposits

by Gabriel Stein

Mon 19 May 2014

US large time deposits Enlarge Chart loading Image

What the chart shows: The chart shows the 13-week annualised change in deposits at US commercial banks; and in large time deposits

Why the chart is important: Large time deposits are deposits with more than $100,000. These are therefore deposits held by companies or wealthier individuals. Arguably, the behaviour of these categories is of greater importance to financial asset prices than the change in total deposits, since wealthier individuals and companies are more likely to be investors. Over the summer, these deposits grew at a steady rate of 5%. There were concerns that the Fed’s tapering of its quantitative easing would cause deposit growth to weaken. Instead, it has accelerated into double digits. This argues for continued support for asset prices, notably US equities.

Chart and comments provided by Oxford Economics www.oxfordeconomics.com