The Fed faces a tough decision on whether to raise interest rates against the backdrop of banks in turmoil and a country with high inflation. The message tomorrow will loom as large as the decision.
I think it is less important whether they raise by 0.25% or pause. It is more important to pay attention to their message, the data and their tone. Rebuilding confidence is their #1 priority tomorrow. Tackling inflation is well underway and many investors (even consumers) are seeing the forward lower trending CPI and PPI. Even labor is bound to come down given the tightening credit conditions among regional banks/local smaller banks because they serve SMBs.
Howcum no one has said the current banking turmoil looks like a puff of smoke compared to what will happen if the US does not raise the debt limit and defaults on its debt?
It's wild how irresponsible it is to make such broad claims - such as inflation going down by the summer. Some people invest based off of this advice. Tread lightly and zoom out.
Would like to know where Fed stands on issue of regulation and shedding some light on reasons of failure of SVB, and what more regulations are needed to have broader supervision/control over small & medium banks.
Much appreciated. A pause would be ideal.
I think it is less important whether they raise by 0.25% or pause. It is more important to pay attention to their message, the data and their tone. Rebuilding confidence is their #1 priority tomorrow. Tackling inflation is well underway and many investors (even consumers) are seeing the forward lower trending CPI and PPI. Even labor is bound to come down given the tightening credit conditions among regional banks/local smaller banks because they serve SMBs.
Once again, irresponsible bankers, bumbling forward through multiple warnings, without an in-house compliance officer. Dot-plot this:
Private enterprise seeks to socialize its losses.
Private enterprise seeks to privatize socialism.
Howcum no one has said the current banking turmoil looks like a puff of smoke compared to what will happen if the US does not raise the debt limit and defaults on its debt?
It's wild how irresponsible it is to make such broad claims - such as inflation going down by the summer. Some people invest based off of this advice. Tread lightly and zoom out.
"Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing" https://www.theinformation.com/articles/tonals-valuation-may-fall-90-in-cram-down-financing?utm_campaign=Automated+Fallback+R&utm_content=89&utm_medium=email&utm_source=cio&utm_term=19
Wouldn't not raising rates (which would be prudent) signal a lack of confidence?
Would like to know where Fed stands on issue of regulation and shedding some light on reasons of failure of SVB, and what more regulations are needed to have broader supervision/control over small & medium banks.
https://www.nytimes.com/2023/03/19/business/economy/fed-silicon-valley-bank.html