Lawmakers slam big bank CEOs for failure to increase interest rates on savings

Congressional lawmakers slammed U.S. bankers this week for not raising interest rates on savings accounts held by everyday consumers despite a series of major increases in the federal funds rate by the Federal Reserve.

Interest rate increases by the Fed make it more expensive for banks and other financial institutions to borrow money from each other, and this theoretically extends the purchasing power of the dollar and brings down inflation.

But higher interest rates also make it more lucrative for banks to lend money, a revenue increase they could be passing onto consumers in the form of higher interest rates on basic savings and money market accounts.