BlackRock’s Rick Rieder said it’s not clear whether there are any additional shoes to drop in the banking system, but he does see some tightening of lending and that could hurt the economy. “When you move the funds rate up as much as it has, and the banks are competing deposit-wise with Treasury bills at … Read more
Some investors worry the Federal Reserve will have a tough time succeeding in wielding the tools to both fight inflation and calm the banking system. The Fed began its two-day meeting Tuesday morning, and it’s widely expected to raise interest rates again. The futures market is pricing a more than 80% chance the Fed raises … Read more
Federal Reserve Chair Jerome H. Powell testifies before a U.S. Senate Banking, Housing, and Urban Affairs Committee hearing on “The Semiannual Monetary Policy Report to the Congress” on Capitol Hill in Washington, U.S., March 7, 2023. Kevin Lamarque | Reuters The Federal Reserve is expected to raise interest rates Wednesday by a quarter point, but … Read more
People wait outside the Silicon Valley Bank headquarters in Santa Clara, California, to withdraw funds after the federal government intervened upon the bank’s collapse, on March 13, 2023. Nikolas Liepins | Anadolu Agency | Getty Images It’s been an unsettling period for consumers and the financial markets as the collapse of Silicon Valley Bank has … Read more
Rate hikes, one year later For its part, the Fed has already hiked its benchmark fund rate eight times over the last year to its current level between 4.5% and 4.75%. The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another … Read more
There’s speculation the Silicon Valley Bank collapse could expose problems lurking in ETFs tied to specific sectors. Astoria Portfolio Advisors CIO John Davi has financials topping his watch list. “You need to be mindful of your risk,’” Davi, who runs the AXS Astoria Inflation Sensitive ETF, told CNBC’s “ETF Edge” this week. The fund is … Read more
Dread that more trouble could be unearthed in the banking sector has created a cloud of worry around markets that will not easily be shaken. In the week ahead, the Federal Reserve has its chance to weigh in. Following its meeting Tuesday and Wednesday, the central bank could raise the fed funds rate by another … Read more
U.S. Federal Reserve Chair Jerome Powell addresses reporters after the Fed raised its target interest rate by a quarter of a percentage point, during a news conference at the Federal Reserve Building in Washington, February 1, 2023. Jonathan Ernst | Reuters Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely … Read more
With all the wild volatility and hair-pulling over the fate of bank stocks, the average person on the street probably thinks the stock market has cratered this week. But it hasn’t: The S & P 500 is up 2.6%. You can largely thank the performance of tech stocks, where the bulls have once again seized … Read more
CNBC’s Jim Cramer on Thursday said the Federal Reserve no longer needs action to tame inflation — and it’s because of the banking crisis. Cramer said 10 days ago that investors were expecting a possible 50-basis-point interest rate hike from the Fed based on Chairman Jerome Powell’s recent response to January inflation data and the … Read more