The Impact of Fed Rate Hikes on Small U.S. Banks.

The Federal Reserve's fight against inflation can only be won if community banks and small businesses are healthy. Community banks primarily serve small businesses, which are the backbone of the economy. The Fed's aggressive interest rate hikes have put pressure on banks, including community banks, which carry more short-maturity, local loans than their bigger counterparts. Rising interest rates have made deposits and loans more expensive for local businesses, entrepreneurs, and real estate developers. The success of small businesses and community banks is integral to the nation's economy, and their success is America's success.