Oregon Banks Face Challenges as Pandemic Savings Decline, Interest Rates Rise
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Deposits in Oregon banks fell 9.5% last year, the steepest rate in a decade, as pandemic savings were spent down.
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Banks have weathered withdrawals after a bank collapse last March, but now face losing deposits to higher federal interest rates.
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Economists are split on whether high inflation and interest rates will trigger a recession in the next year.
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An Oregon labor shortage continues to push up wages and costs, putting strain on some consumers.
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One economist expects a mild recession next year, with increased layoffs but unemployment only rising to around 5%.