Wall Street closed sharply higher on Tuesday as widespread fears over liquidity in the banking sector abated and market participants eyed the Federal Reserve, which is expected to conclude its two-day policy meeting on Wednesday with a 25 basis-point hike to its policy rate.
A one-two punch of regional bank failures last week, followed by the rescue of First Republic Bank
"The stock market is coming to a recognition that the banking crisis wasn't a crisis after all, and was isolated to a handful of banks," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "Both the public and the private sector have shown they are more than able to backstop and shore up weak institutions.", in prepared remarks before the American Bankers Association, said the U.S.
"The Fed will raise interest rates by 25 basis points and the market won't care," Pursche added. "It will all be about Powell's statement on the economy and inflation, and if he can do a good enough job convincing the public that the banking noise" can be attributed to bad management on the part of a few banks.
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