Analysts say the Federal Open Market Committee will want to minimize the “recent stress” in the financial industry after the White House took extraordinary measures to shore up SVB users and regulators shut down Signature Bank to stem wider fallout.
“In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22,” Goldman economist Jan Hatzius said in a Sunday note reported by CNBC. Previously, Goldman expected the Fed to raise rates by a quarter of a percentage point as the central bank scrambles to cool the economy and rein in inflation.
President Biden on Monday is outlining the steps he is taking to make depositors whole while minimizing risks to taxpayers or the wider financial system. Goldman analysts said federal efforts should bolster depositors’ confidence but not amount to the sweeping actions that were executed following the economic collapse in 2008.
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SVB implosion: Goldman Sachs doesn't expect Fed rate hike in MarchGoldman Sachs says it doesn't expect a Fed interest rate hike in March after Silicon Valley Bank's implosion Won't happen 'cause banking liquidity hole has been plugged and too much egg would be on Fed's face destroying confidence. Hike onward and upward! They run Powell the bank executives!!! Damn shame kill inflation Powell Didn’t Powell just explain he would continue to raise
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