While the recent withdrawals from banks in the United States may have caused concern, experts agree that they do not indicate a larger problem in the banking system
The programme will make liquidity available to US depository institutions in the form of advances against certain types of securities as collateral.
If Jerome Powell was a character in the Mahabharata, he surely would have been Arjun – laser-focused on hitting his target.
Devina Mehra of First Global in conversation with N Mahalakshmi on Fed rate hike, US banking crisis & India strategy.
Uncertainty and risk to upside in inflation has reduced; the sooner financial stability is achieved is better for investors
Fed reserve Chief Jerome Powell announces key decision on rate hikes after a 2-day meeting of the US Federal Reserve. Watch!
With inflation still at 6 percent, significantly above the Fed’s target, and the labour market stronger than it has been for more than 50 years, there is still a strong case for tightening rates.
The immediate trigger for a move in gold, on either side, will come from the Federal Reserve's monetary policy
World markets are keenly awaiting US Fed’s interest rate decision that will be announced later today. The US central bank is expected to increase interest rates by a quarter point, even with concerns about stress in the banking system. Futures markets are pricing in a roughly 80% chance for a rate rise but a fraction of the markets are also hoping for a pause on rate hikes. All eyes will be on US Fed chair Jerome Powell’s commentary on future rate hike path, inflation and growth projections and the issues with US regional banks. What will the Fed do as it faces a tough choice amid the banking turmoil and its inflation fight? Watch this chat between Nandita Khemka and Santosh Nair to know more!
While recent market turmoil has eased, the Federal Reserve's meeting later in the day is now a major focus for investors, with traders split over whether the U.S. central bank will be forced to pause its hiking cycle to ensure financial stability.
Efforts by U.S. Treasury Secretary Janet Yellen to calm nerves seemed to be working with bank shares rallying overnight. Government officials were also pondering increasing the limit on deposit insurance, though there was no agreement on this as yet.
All three major U.S. stock indexes were bright green as the session closed, with energy (.SPNY) consumer discretionary (.SPLRCD) and financials (.SPSY) enjoying the most sizable gains.
Why should one crank up one’s blood pressure for negligible gains from the stock market when FDs are generating tension-free returns of 7 percent and more?
The Federal Reserve on Wednesday will set the tone as Chair Jerome Powell gathers with his colleagues to consider whether the banking turmoil that erupted less than two weeks ago is so concerning that an interest-rate hike should be abandoned.
Many economists expect central bankers to raise interest rates a quarter-point, to just above 4.75%, on Wednesday, continuing their fight against rapid price increases.
High inflation and high interest regime in the longer term would present more complex challenges, not just liquidity
The move came on the heels of a deal brokered by Swiss authorities to have UBS UBSG.S buy rival Swiss bank Credit Suisse CSGN.S to prevent its disorderly collapse and signals the depth of concern central bankers have over the recent turmoil in the financial system on both sides of the Atlantic.
Problems remain in the US banking sector, where bank stocks remained under pressure despite a move by several large banks to deposit $30 billion into First Republic Bank, an institution rocked by the failures of Silicon Valley and Signature Bank
Across markets, the most convincing sign of a recession is the plunge in Treasury yields. Sinking further Friday, the downturn was led by shorter-dated bonds, which took the entire yield curve below 4 percent as banking turmoil led traders to price in more Federal Reserve rate hikes
The near-term trajectory of yields will likely hinge on next week's Federal Reserve meeting. Signs that the central bank may prioritise financial stability and slow or pause its rate increases could pull yields even lower
Although worries about continued high inflation hurting economic growth persist, a slower pace of rate hikes will calm equity markets and stem the fall in asset prices in the short-term
The run on the Silicon Valley Bank and Signature Bank in the US has led to increasing calls for the Federal Reserve to halt its interest rate rises. This also complicates policymaking for emerging market rate-setters.
Gopinath said the RBI’s rate decisions will be based on the MPC’s assessment of the domestic macroeconomic situation and the SVB episode is unlikely to play a role
Goyal pointed out that US actions have spillover effects for the rest of the world
The chief of investment research adds that US CPI may come down to 5.3 percent in March; expects Fed rate cut in second half of 2023