The U.S. Federal Reserve begins a two-day meeting on Tuesday, with some top central bank watchers saying it could well pause further rate hikes given recent trouble among banks or even delay releasing new economic projections because the outlook is so clouded.
by the Fed and other central banks would keep the financial system stable - and not allow it to degenerate in a series of failures.on policymakers approving a quarter-point rate increase, which would push the target federal funds rate to a range between 4.75% and 5%. The yield on the 2-year Treasury note - particularly sensitive to Fed policy expectations - rose steadily through the day, adding roughly a quarter of a point from the overnight low and approaching 4%.
Analysts trying to parse what recent bank stress might mean said a coming credit contraction could be the equivalent of an additional quarter point Fed rate increase, or as much as a recession-inducing 1.5 percentage points, rendering further rate hikes obsolete. KPMG Chief Economist Diane Swonk went further, saying the Fed should not only delay any further rate hikes, but also withhold economic projections scheduled to be released at the conclusion of this week's meeting because they would "create more chaos than clarity."
But her recommendation - and she wasn't alone in suggesting the Fed might delay its quarterly Summary of Economic Projections - also hinted at the risks involved when a central bank does anything unexpected.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What’s at stake for stocks, bonds as Federal Reserve weighs bank chaos against inflation fightMarkets may be in a vulnerable position ahead of the Federal Reserve’s meeting this week, as traders bet the banking crisis could lead to interest-rate cuts...
Read more »
Elizabeth Warren: Jerome Powell has ‘failed’ as Federal Reserve chairSen. Warren on Federal Reserve Chair Jerome Powell: 'He has had two jobs. One is to deal with monetary policy. One is to deal with regulation. He has failed at both.'
Read more »
Sen. Warren calls for probe of Federal Reserve System after SVB implosionWarren called for an independent investigation of the Fed and the “whole regulatory system,” and demanded the reversal of the weakened oversight system amid the collapse of two US banks…
Read more »
Gold Price Forecast: XAU/USD retreats towards $1,960 as yields rebound, Federal Reserve eyedGold price (XAU/USD) takes offers from the Year-To-Date (YTD) high while targeting the previous resistance surrounding $1,960, near $1,976 by the pres
Read more »
Jerome Powell on the horns of dilemma of the Federal Reserve's own makingAhead of the FOMC's interest rate decision, Federal Reserve chief Powell faces a banking crisis and the need to tackle high inflation.
Read more »
Federal Reserve sounded alarm about Silicon Valley Bank's risk management in 2019: reportThe Federal Reserve reportedly issued multiple warning about Silicon Valley Bank's risk management starting at least four years before the bank's implosion.
Read more »