Washington Correspondent
“Credit crunch.”
The expression was long forgotten.
It reappeared in the press and analyzes of the American situation.
A "credit crunch", a rationing or drying up of credit, would increase the risks of this recession in the United States so much announced in recent months.
The bankruptcies of two “medium-sized” institutions, Silicon Valley Bank and Signature Bank (with total assets between $110 billion and $210 billion), last month revealed the vulnerability of banks to the flight of their deposits into a context of sharply rising interest rates.
The Federal Reserve itself admits:
"Recent developments are likely to result in tighter credit supply conditions for households and businesses, and weigh on economic activity, hiring and inflation," said the latest statement from
its monetary committee. , dated March 22.
By focusing too much on the Fed's key rate, past...
This article is for subscribers only.
You have 82% left to discover.
Want to read more?
Unlock all items immediately.
TEST FOR €0.99
Already subscribed?
Login
