US Bancorp: We're excited for higher rates

U.S. Bancorp CEO: Rate hike spurs loans & savings
U.S. Bancorp CEO: Rate hike spurs loans & savings   

With the Federal Reserve expected to raise interest rates later this year, U.S. Bancorp is bracing for a bump in its lending and savings businesses, CEO Richard Davis said.

In an interview at Morgan Stanley's Financials Conference in New York, Davis said he expects executives to move quickly once the central bank starts hiking rates, to lock in loans and financing for projects that have been on the back burner.

He also thinks higher rates will bring homebuyers off the sideline, as they will want to get mortgages before rates on these loans return to historically normal levels.

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More exciting, said Davis, is that higher rates will finally allow the bank to start conversing again with savers.

Davis said there is a whole population out there looking for the security a bank CD or savings account can provide, but which instead has put money in riskier instruments, looking to get more yield.