Experts See Possible Exodus Of Bank Deposits Following Pandemic Recovery: WSJ

The year 2022 could jinx the U.S. banks' streak of increasing deposits as a group every year since at least World War II, the Wall Street Journal reports.
Bank analysts have slashed their deposit level expectations at the biggest banks over the past two months.
The 24 institutions that make up the benchmark KBW Nasdaq Bank Index will likely see a 6% decline in deposits in 2022.
Bank deposits have grown sharply during the pandemic fueling doubts over a full-year decline.
According to the WSJ, total deposits rose 35% to $5 trillion over the past two years as consumers stashed away stimulus checks and businesses stockpiled cash to counter shutdowns and supply-chain issues.
Analysts do not see the deposit trend continuing amid the pandemic recovery.
Analysts saw money-market funds march their rates higher along with the Fed, rendering them more attractive than bank deposits.
The Fed would likely boost interest rates by 0.5% instead of the typical 0.25% increase, causing an exodus of deposits from the banks.
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