The Fed's Dilemma: Balancing Guarantees and Interest Rates.
TL;DR Summary
US Treasury Secretary Janet Yellen said the government could guarantee deposits at other banks if they pose a threat to the banking system, but only if they suffer a run and their collapse would affect the rest of the banking sector. Regional banks initially rose on the news, but quickly lost ground in after-hours trading. Meanwhile, gold prices are expected to breach their all-time high of $2,075 in the coming weeks, and Morgan Stanley is now "outright bullish" on stocks in Asia and emerging markets. The Federal Reserve's decision on interest rates is also eagerly awaited.
- CNBC Daily Open: Janet Yellen's guarantee to banks comes with a catch CNBC
- Federal Reserve 'between a rock and a hard place' as interest rate decision looms Yahoo Finance
- Fed to pause at its March meeting – Goldman Sachs FXStreet
- Who Says the Fed Can Only Fix One Problem at a Time? Bloomberg
- Horowitz: As central banks accelerate twin banking, inflation crises, time to revisit role of the Fed TheBlaze
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