The Federal Reserve is expected to raise interest rates by a quarter of a percentage point, a decision that will land amid a brewing political storm over the U.S. central bank’s oversight of collapsed Silicon Valley Bank. | Reuters
The sudden threat of financial instability stemming from a Fed-supervised institution has complicated monetary policy decisions that had been tightly focused on raising interest rates to fight inflation, and raised the stakes for Powell in explaining the outcome of this week’s meeting and the Fed’s response to the SVB collapse.As policymakers kicked off their latest Federal Open Market Committee meeting, U.S.
Still, turbulence in financial markets and the banking system is likely to feature prominently in Powell’s post-meeting news conference, which is scheduled to begin at 2:30 p.m. EDT . The U.S. central bank will release its policy statement and new economic projections from Fed officials at 2 p.m. EDT.
As of December, Fed policymakers thought the fed funds rate might stop between 5 percent- and 5.25 percent-, but higher-than-expected inflation had led Powell to indicate the stopping point might be even higher. Raising rates might keep the focus on inflation but add to bank stress; pausing rate hikes until financial markets are settled might seem prudent, but could also appear to weaken the Fed’s commitment to taming high inflation and make it seem as if the situation in the banking sector is worse than it is.
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.
Fed rates, projections, stability concerns a 'mess' to be sortedThe United States Federal Reserve faces a suddenly tricky decision over how to keep pressure on the economy to slow inflation without pushing a swath of midsized banks to the snapping point.
Read more »
Wall Street ends green on bank bounce as Fed takes focusNEW YORK - Wall Street closed sharply higher on Tuesday as widespread fears over liquidity in the banking sector abated and market participants eyed the Federal Reserve, which is expected to conclude
Read more »
EXPLAINER: How does US bank deposit insurance work, and who does it cover?Currently, the Federal Deposit Insurance Corporation guarantees deposits of up to $250,000 per person, per bank.
Read more »
Dollar muted as traders await Fed rate decisionThe dollar was pinned near five-week lows ahead of the conclusion of the U.S. Federal Reserve’s policy meeting, with investors awaiting clarity on the path the central bank is likely to take in the wake of global banking turmoil. | Reuters
Read more »
Asia shares hope for best as Fed decides on ratesAsian shares staged a cautious bounce on Wednesday with hopes a global banking crisis would be averted vying with uncertainty over the outlook for U.S. interest rates as the Federal Reserve holds a high-stakes meeting on policy. | Reuters
Read more »
Reaves rising to challenges in Lakers' playoff push | The Associated PressLOS ANGELES—When the Los Angeles Lakers reached the final minutes of a tight game they desperately needed to win, the player with the ball in his hands on every possession Sunday night wasn't one of their superstars, but an undrafted second-year reserve guard who has made a career out of…
Read more »