There may be further turmoil ahead for the US's embattled banking sector, as the Federal Reserve is forced to pick between curbing inflation and ensuring financial stability, according to Fidelity Investments.
The asset-management titan said earlier this month that the Fed is trapped in a"twilight zone" where it is unable to tame soaring prices without increasing the risk of further banking shocks. "We believe we have now entered the 'twilight zone' of central banking where financial stability concerns start to impinge on policymakers' primary price stability objectives," a team led by Max Stainton said in Fidelity'sSilicon Valley Bank sparked fears of a full-blown financial crisis last month when it collapsed after disclosing massive losses on its bond portfolio, with the value of its fixed-income holdings cratering over the course...
. When depositors learned of the losses, they feared the bank could fail and pulled their money out in droves, spurring the FDIC to take control of the lender and guarantee all of its deposits.to prop up other struggling lenders in response to the turmoil – but still raised interest rates by 25 basis points to upwards of 4.75% on March 22, as it forged ahead with its efforts to bring inflation down to its 2% target.
Inflation will remain higher because of bringing jobs back from abroad. Fed needs to stop the absolute nonsense that they will get 2% inflation That world is over now
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to find cheap growth stocks in volatile markets: Fidelity PMA Fidelity fund manager who's beaten 93% of competitors in the past 5 years shares his strategy for delivering upside while avoiding painful selloffs — and explains how he finds 'mispriced growth' stocks hiding in markets The key phrase is “fund category”. How did it do against Warren Buffett’s recommendation of Vanguard S&P Fund VOO, net of costs and fees? My guess knowing WB, is the Fidelity fund faired negatively.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: Reuters - 🏆 2. / 97 Read more »
Source: WSJ - 🏆 98. / 63 Read more »