The yield curve inversion has increased since then. An indicator that the New York Fed produces using the spread between 3-month and 10-year Treasurys put the chance of a contraction in the next 12 months at about 55% as of the end of February. At the same, recession concerns persist as the rate increases work their way through the economic plumbing. The Fed and other regulators stepped in with emergency measures that seem to have stemmed immediate funding concerns, but worries linger over how deep the damage is among regional banks. Silicon Valley, for instance, had to sell bonds at a loss, triggering a crisis of confidence. While big banks are considered well capitalized, smaller institutions have faced liquidity crunches due to the rapidly rising interest rates that have made otherwise safe long-term investments lose value. Closures of Silicon Valley Bank and Signature Bank, and capital issues at Credit Suisse and First Republic, have raised concerns about the state of the industry. Markets had been closely watching the decision, which came with a higher degree of uncertainty than is typical for Fed moves.īut the banking issues have complicated the decision-making calculus as the Fed's pace of tightening has contributed to liquidity problems. The statement eliminated all references to the impact of Russia's invasion of Ukraine. Data released along with the statement shows that seven of the 18 Fed officials who submitted estimates for the "dot plot" see rates going higher than the 5.1% "terminal rate." The next two years' worth of projections also showed considerable disagreement among members, reflected in a wide dispersion among the "dots." Still, the median of the estimates points to a 0.8 percentage point reduction in rates in 2024 and 1.2 percentage points worth of cuts in 2025. Projections released along with the rate decision point to a peak rate of 5.1%, unchanged from the last estimate in December and indicative that a majority of officials expect only one more rate hike ahead. The rate sets what banks charge each other for overnight lending but feeds through to a multitude of consumer debt like mortgages, auto loans and credit cards. The increase takes the benchmark federal funds rate to a target range between 4.75%-5%. While comments Fed Chair Jerome Powell made during a news conference were taken to mean that the central bank may be nearing the end of its rate-hiking cycle, he qualified that the inflation fight isn't over. "The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time." That wording is a departure from previous statements which indicated "ongoing increases" would be appropriate to bring down inflation. "The Committee will closely monitor incoming information and assess the implications for monetary policy," the FOMC's post-meeting statement said. Along with its ninth hike since March 2022, the rate-setting Federal Open Market Committee noted that future increases are not assured and will depend largely on incoming data. WASHINGTON - The Federal Reserve on Wednesday enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Northeast India: The region is likely to experience rainfall and thunderstorm activity from 26 March.Best Debt Consolidation Loans for Bad Credit South India: Rainfall and thunderstorm may occur over Telangana, Kerala, and Karnataka from 24 March.Ĥ. Central India: Fresh spells of rainfall and thunderstorm may occur in Madhya Pradesh, Vidarbha, and Chhattisgarh during March 24-26.ģ. Northwest India: A fresh spell of rainfall and thunderstorm activity may commence over the region today evening (23 March) with isolated hailstorms likely over Himachal Pradesh, Uttarakhand, Punjab, Haryana, Chandigarh, west Uttar Pradesh, and Rajasthan today and tomorrow.Ģ. March 25 and 26: Madhya Pradesh, Vidarbha, Chhattisgarhġ. March 24: Himachal Pradesh, Uttarakhand, Punjab, Haryana, West Uttar Pradesh, East Rajasthan and West Madhya Pradesh March 23: Uttarakhand, Punjab, Haryana, and West Rajasthan The impact expected and action suggested due to isolated thunderstorm/lightning/gusty winds and hailstorm These deep western disturbances when interacting with Indian regions with the low-level wind that generally comes due to summer heating increase the severity of thunderstorms. ![]() ![]() IMD scientist Soma Sen Roy said this month western disturbances have become deep. ![]() Reason for rainfall, snowfall on March-end:
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