When Can We Expect a Return to Normal Interest Rates?

Click to enlarge.

Last month? We have returned to the long-term trend line in blue. What more do you want?

I guess it was sort of a trick question. This chart shows how tiny small time deposits (under $100,000) are compared to how much debt the consumer has racked up (bottom scale). The ratio hit a new low in September and I don't really expect November to buck the trend. It also shows what that tiny ratio might mean to 10-year treasury yields (left scale).

Perhaps you are interested in large time deposits instead? Good luck finding a trend there. I'm not sure the one percent buy enough canned goods to matter (probably close to 1% at best). I'm also guessing that they don't generally rent tires. Just a hunch.

Deep sigh.

Source Data:
St. Louis Fed: Custom Chart