Banking Crisis Puts Pressure on Fed's Rate Hike Decision
TL;DR Summary
The recent failures of several banks in the US and Europe have caused some bankers and analysts to believe that the Federal Reserve may take a break from its rate hikes. Goldman Sachs analysts expect the Fed to pause at its March meeting this week because of stress in the banking system. The Fed's program of quantitative tightening may also be coming to an effective end, with total assets held on the Fed's balance sheet spiking from $8.34tn to $8.64tn over the course of last week, indicating the bank likely shelled out around $300bn in loans and asset purchases to banks concerned about their liquidity.
- How the banking crisis throws a wrench into Fed rate-hiking The Hill
- Federal Reserve Faces Tough Decision on Rate Increase The Wall Street Journal
- Federal Reserve poised to hike interest rates amid banking turmoil CBS News
- The Fed is likely to hike rates by a quarter point but it must also reassure it can contain a banking crisis CNBC
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