Federal Reserve Building, Washington, DC Lance Nelson | Image Bank | Getty Images The Fed will hike rates one more time in 2023 before the central bank ends its war on inflation, according to the median forecast released Wednesday. The Fed left its “terminal rate,” the rate at which its benchmark federal funds rate will … Read more
What the Fed Funds Rate Means for You “The banking problems probably make a lot of people think twice,” said Diana Furchtgott-Roth, a George Washington University economics professor and former chief economist at the Labor Department. “People are less confident,” she said, referring to the wealth effect, or the fact that people spend less when … Read more
People wait to withdraw funds outside Silicon Valley Bank headquarters in Santa Clara, California, on March 13, 2023, after the federal government intervened in the bank’s collapse. Nicolas Lepin | Anadolu Agency | Getty Images This is a turbulent time for consumers and financial markets as Silicon Valley Bank already rippling wider banking system. The … Read more
rate hike, one year later For its part, the Fed has raised its benchmark funds rate eight times in the last year to current levels between 4.5% and 4.75%. The federal funds rate, set by the central bank, is the rate at which banks borrow overnight. But Fed rates also directly and indirectly affect the … Read more
There has been speculation that SVB’s collapse could expose problems lurking in industry-specific ETFs. John Davi, chief information officer at Astoria Portfolio Advisors, put financials at the top of his watch list. “You need to be mindful of your risk,” says Davi, who runs the firm AXS Astoria Inflation Sensitive ETFtold CNBC’s “Advantages of ETFsThis … Read more
European Central Bank (ECB) President Christine Lagarde announced a new monetary policy decision. Frederick Florin | AFP | Getty Images this European Central Bank Announcing a further 50 basis point hike on Thursday, it signaled its readiness to provide liquidity to banks if needed amid recent turmoil in the banking sector. For weeks, the ECB … Read more
Economist Mohamed El-Erian said the Fed failed to slow down its aggressive pace of rate hikes in time, and now the central bank’s credibility is at stake as a series of banking crises intensifies. The Allianz and Gramercy consultant said he believed the recent crisis in the banking sector was the result of a combination … Read more
Analyst Christopher Marinac said the sharp decline in regional bank stocks was a key entry point for investors. Marinac, who is director of research at Janney Montgomery Scott, believes the group’s decline over the past week offers investors an attractive entry point as the underlying business fundamentals remain intact. “We definitely slipped on the banana … Read more
The aftermath of last week’s Silicon Valley bank collapse has bankers and investors worried that one of the industry’s fundamental building blocks — deposits — could be flushed out the door. Typically, deposit accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation, created during the Great Depression, which protects most individuals but … Read more
Employees stand outside the closed Silicon Valley Bank (SVB) headquarters in Santa Clara, Calif., March 10, 2023. Justin Sullivan | Getty Images News | Getty Images The report comes from today’s CNBC Daily Open, our new international markets newsletter. The CNBC Daily Open gives investors a quick overview of everything they need to know, no … Read more