The Limited Times

Now you can see non-English news...

The Fed raises rates, the banks weigh on growth

2023-03-22T20:10:31.044Z


Powell: 'Solid system'. Further increases against inflation are expected (ANSA)


The Fed raises interest rates by 0.25% and signals that further hikes could be appropriate to tame an inflation that won't let go.

Despite the tensions on the banking market, the central bank is therefore continuing its battle and bringing the cost of money to a range between 4.75% and 5%, the highest since September 2007. "The American banking system is solid, resilient and well capitalised", assures the Fed president, noting however how in recent weeks "serious difficulties have emerged in a number of small banks".

Problems - assures Jerome Powell - that do not put account holders' savings at risk: they are "safe", "we have the tools to protect deposits" and "

The unemployment rate is instead forecast for this year at 4.5%.

However, more than rates, it is the banking crisis that dominates the press conference following the two-day meeting, with Powell on the field in defense of the rapid and strong action of the authorities.

The governor of the Bank of Italy Ignazio Visco also noted the speed of the American intervention.

"Supervision has had flaws but rapid decisions have been made, especially in the USA" and "I believe that if we in Europe had a crisis" for "small and medium-sized banks we would not have an immediate intervention tool" as "I have been saying for years" , observes Visco during a hearing in the Chamber.

The Fed chairman is inundated with criticism over the failure of Silicon Valley Bank which, having more than $100 billion in assets,

it was just under the supervision of the central bank.

"It is clear that we need" a tightening of bank regulations and supervision, he said, opening up the possibility of an external investigation into the Fed's supervision of SVB. "It would be welcome", he replied to those who pressed him .

The hypothesis of an investigation outside the Fed is supported by Democratic Senator Elizabeth Warren who, known as an anti-Wall Street champion, leads a personal battle against Powell.

A fight from which Powell has so far emerged unscathed also thanks to the trust repeatedly reaffirmed by Joe Biden who, in the performance of the economy, plays a large part of his chances for 2024.

there is a tightening of the rules and supervision of banks, he said, opening up the possibility of an external investigation into the supervision of SVB by the Fed. "It would be welcome," he replied to those who pressed him.

The hypothesis of an investigation outside the Fed is supported by Democratic Senator Elizabeth Warren who, known as an anti-Wall Street champion, leads a personal battle against Powell.

A fight from which Powell has so far emerged unscathed also thanks to the trust repeatedly reaffirmed by Joe Biden who, in the performance of the economy, plays a large part of his chances for 2024.

there is a tightening of the rules and supervision of banks, he said, opening up the possibility of an external investigation into the supervision of SVB by the Fed. "It would be welcome," he replied to those who pressed him.

The hypothesis of an investigation outside the Fed is supported by Democratic Senator Elizabeth Warren who, known as an anti-Wall Street champion, leads a personal battle against Powell.

A fight from which Powell has so far emerged unscathed also thanks to the trust repeatedly reaffirmed by Joe Biden who, in the performance of the economy, plays a large part of his chances for 2024.

he replied to those who pressed him.

The hypothesis of an investigation outside the Fed is supported by Democratic Senator Elizabeth Warren who, known as an anti-Wall Street champion, leads a personal battle against Powell.

A fight from which Powell has so far emerged unscathed also thanks to the trust repeatedly reaffirmed by Joe Biden that, in the performance of the economy, a large part of his chances for 2024 are at stake.

he replied to those who pressed him.

The hypothesis of an investigation outside the Fed is supported by Democratic Senator Elizabeth Warren who, known as an anti-Wall Street champion, leads a personal battle against Powell.

A fight from which Powell has so far emerged unscathed also thanks to the trust repeatedly reaffirmed by Joe Biden that, in the performance of the economy, a large part of his chances for 2024 are at stake.



Wall Street closes negative after the Fed. The Dow Jones loses 1.63% to 32,028.90 points, the Nasdaq drops 1.60% to 11,669.96 points while the S&P 500 leaves the ground at 1.56 % to 3,936.34 points.

Source: ansa

All life articles on 2023-03-22

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.