WASHINGTON: The Federal Reserve is expected to raise interest rates by a quarter of a percentage point on Wednesday (Mar 22), a decision that will land amid a brewing political storm over the US central bank's
As policymakers kicked off their latest Federal Open Market Committee meeting, US Senator Rick Scott, a Republican and possible 2024 presidential candidate, demanded in a letter to Powell that the Fed chief address the"failures and malfeasance" behind the collapse of SVB and another US lender, Signature Bank, and"name the individual being fired".
Still, turbulence in financial markets and the banking system is likely to feature prominently in Powell's post-meeting news conference, which is scheduled to begin at 6.30pm GMT . The US central bank will release its policy statement and new economic projections from Fed officials at 6pm GMT.
Less clear, and arguably more important, is how a new policy statement assesses the risks to the economy posed by the recent trouble in banking markets, how it characterises the likely need for further rate increases, and how high officials think the target interest rate will rise by the end of this year.
"Economic data points toward one outcome while conditions in financial markets favor the opposite ... Communication will be a challenge," as the Fed tries to explain what seems a no-win policy choice, said Ryan Sweet, chief US economist at Oxford Economics.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed, US banks in focus as mood improves on Credit Suisse rescueInvestors on Tuesday took some heart from the rescue of troubled lender Credit Suisse by its Swiss rival UBS, though concerns lingered about the risk of shockwaves further damaging credit markets and smaller U.S. banks.Attention is now on this week's meeting of the U.S. Federal Reserve, with traders wonde
Read more »
Analysis:Safe-havens and risk assets both rise as banking woes shift Fed expectationsNEW YORK : Worries over the banking crisis are boosting disparate assets, with traditional safe-havens such as gold, Treasuries and money markets seeing high demand along with more speculative instruments such as tech stocks and bitcoin. The unusual cross-currents come as the financial distress that start
Read more »
Commentary: Worst bank turmoil since 2008 complicates upcoming US Fed interest rate decisionSilicon Valley Bank and Signature Bank collapsed virtually overnight and a rescue of First Republic failed to stem unease. The Federal Reserve could risk further weakening banks, a resurgence of inflation or even a recession, says this finance professor.
Read more »
Asia shares hope for best as Fed decides on ratesSYDNEY : Asian shares staged a cautious bounce on Wednesday with hopes a global banking crisis would be averted vying with uncertainty over the outlook for U.S. interest rates as the Federal Reserve holds a high-stakes meeting on policy.Efforts by U.S. Treasury Secretary Janet Yellen to calm nerves seemed
Read more »
US banks face scrutiny as Fed rate decision loomsA scramble by troubled U.S. lender First Republic Bank to secure a capital infusion kept worries about the broader banking sector alive on Wednesday as authorities considered steps to further strengthen financial stability.While recent market turmoil has eased, the Federal Reserve's meeting later in the d
Read more »
Asia tracks Wall Street rally as Fed decision replaces bank worriesHONG KONG: Asia extended a global equities rally on Wednesday (Mar 22) as more pledges of government support soothed worries over the banking sector and provided some much-needed stability after more than a week of upheaval. The dialling down of volatility allowed traders to turn their focus on the
Read more »