The government inflation report being released Tuesday is expected to show that price acceleration in the United States remained chronically high in February, putting the Federal Reserve in an unusually tough position.
With bank share prices cratering Monday and fears of further financial instability roiling markets, most economists now expect the Fed to pause its rate hikes next week to avoid causing any further instability at a delicate moment for the banking system.
Jan Hatzius, chief economist at Goldman Sachs, said Goldman now thinks the Fed's policymakers will pause their rate increases next week. Goldman had previously predicted a quarter-point hike. In a note to clients, Hatzius noted that the Fed, for now, appears even more focused on calming the banking sector and the financial markets than on fighting inflation.
The Fed may get some unintentional help in its inflation fight from the aftereffects of the collapse of Silicon Valley Bank and New York-based Signature Bank. In response, many small and medium-size banks may pull back on lending to shore up their finances. A lower pace of lending could help cool the economy and slow inflation.
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.
Mexican president says his country safer than United StatesMexico’s president claimed Monday that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped and later rescued in the border city of Matamoros. President Andrés Manuel López Obrador said U.S. travel warnings and reports of violence in Mexico were the result of a conspiracy by conservative politicians and U.S. media outlets to smear his administration. Despite López Obrador’s assurances that Mexico was safe for travel, the FBI confirmed last week that three other women from the small Texas town of Peñitas have been missing in Mexico since late February.
Read more »
Mexican president says his country safer than United StatesMexico’s president claimed Monday that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped and later rescued in the border city of Matamoros.
Read more »
Gold Price Forecast: XAU/USD retreats on sluggish Treasury yields ahead of United States inflationGold price (XAU/USD) fades the previous day’s upside momentum, the strongest in four months, as it makes rounds to the five-week high surrounding $1,9
Read more »
Mexican president says his country safer than United StatesMexican President Andrés Manuel López Obrador says U.S. travel warnings and reports of violence in his country are the result of a conspiracy by politicians and American media outlets to smear his administration.
Read more »
William Byron wins United Rentals Work United 500 in PhoenixIt was a classic case of deja vu in the desert after Hendrick Motorsports continued to assert their dominance over the competition.
Read more »
An Impossible JourneyHow author jzsalvipoet survived a 9-week migration to the United States, through oceans and deserts, bribery and detention, to begin a new life and figure out his past.
Read more »