Traders are now betting that the Fed will lift its key rate just once more or not at all this year — a staggering pivot from last week.
answered what had become perhaps the hottest question on Wall Street: when is something going to break?
Its disintegration forced the Fed to set up a new emergency facility to let banks pledge a range of high-quality assets for cash over a term of one year. And regulators also pledged to fully protect even uninsured depositors at the lender. For example, Fed increases of more than 400 basis points were expected to hit the brakes on the labour market, but that hasn’t yet happened, with data Friday coming in mixed at best.
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