Federal Reserve to Raise Interest Rates 25 Basis Points Amid Banking Crisis

The Federal Reserve is expected to raise interest rates another 25 basis points – or 0.25% next week amid the banking crisis.

Two US banks failed in the last week after they were unable to produce enough cash for depositors.

Silicon Valley Bank and Signature Bank collapsed within the last week.

Moody’s cut the outlook for the entire US banking sector after the banks failed.

The banking crisis stems from the Federal Reserve’s decision to hike interest rates seven times in 2022.

We are primarily funded by readers. Please subscribe and donate to support us!

Jerome Powell raised interest rates 450 basis points in 2022 to hedge inflation.

The rate hikes are crushing regional banks but the Fed is expected to raise interest rates again next week.

CNBC reported:

Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely will approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts.

www.cnbc.com/2023/03/17/fed-poised-to-approve-quarter-point-rate-hike-next-week-despite-market-turmoil.html

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.