The Federal Reserve is expected to raise interest rates by a quarter of a percentage point on Wednesday, a decision that will land amid a brewing political storm over the U.S. central bank's oversight of collapsed Silicon Valley Bank
of how the Fed supervised the nation's 16th largest bank, an institution with little profile on Main Street until its troubles rocked confidence in other mid-sized lenders who are important providers of business and consumer credit.
The Fed has said its review of SVB's supervision will be finished by May 1 and released to the public. 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 characterizes 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 U.S. economist at Oxford Economics.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jerome Powell on the horns of dilemma of the Federal Reserve's own makingAhead of the FOMC's interest rate decision, Federal Reserve chief Powell faces a banking crisis and the need to tackle high inflation.
Read more »
Warren Says Trump-Picked Jerome Powell Has “Failed” as Chair of Federal ReserveSen. Elizabeth Warren is intensifying her scrutiny of federal financial regulators after the second-and third-largest bank failures in U.S. history.
Read more »
Federal Reserve sounded alarm about Silicon Valley Bank's risk management in 2019: reportThe Federal Reserve reportedly issued multiple warning about Silicon Valley Bank's risk management starting at least four years before the bank's implosion.
Read more »
Bank chaos fuels uncertainty about Federal Reserve’s next policy moveThe Fed will announce its next policy move at the conclusion of a two-day meeting on Wednesday.
Read more »
Federal Reserve Faces Tough Decision on Rate IncreaseFederal Reserve officials this week face one of their toughest calls: whether to raise interest rates again to fight high inflation or take a timeout amid the most intense banking crisis since 2008
Read more »
Gold Price Forecast: XAU/USD grinds beyond $1,940 support, banking crisis, Federal Reserve in focusGold price (XAU/USD) struggles for clear directions around $1,980, following a pullback from the yearly high above $2,000, as markets slip into the ca
Read more »