Fed

The Federal Reserve raised its benchmark interest rate by a quarter percentage-point in an effort to curb high inflation. Some had called for the Fed to ...

On average, members of the rate-setting committee expect the economy to grow 0.4% this year, according to its projections on Wednesday. "The extent of these effects is uncertain." They expect the unemployment rate to climb to 4.5%, from 3.6% in February. That could provide an assist for the Fed in curbing inflation. Members of the Fed's rate-setting committee said additional rate hikes may be necessary to restore price stability. Senators Elizabeth Warren, D-Mass., and Rick Scott, R-Fla., have also proposed replacing the Fed's internal inspector general with an outside inspector, appointed by the president. [large withdrawals from regional banks have "stabilized." Fed The Fed will need to weigh the impact of the collapse of the two regional lenders in deciding how much to raise interest rates going forward. "Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation," the Fed statement said. "We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm," said Michael Barr, the Fed's vice chairman for supervision. Some observers had urged the central bank to pause its rate hikes, at least temporarily, in order to assess the fallout from the collapse of Silicon Valley Bank and Signature Bank earlier this month.

At the same time, the Fed warned that the financial upheaval stemming from the collapse of two major banks is “likely to result in tighter credit conditions” ...

And the European Central Bank, saying Europe’s banking sector was resilient, last week raised its benchmark rate by a half point to combat inflation of 8.5 per cent. But few economists are sure what the effects would be of a pullback in bank lending. The Fed also created a new lending program to ensure that banks can access cash to repay depositors, if needed. Even with the anxieties surrounding the global banking system, for instance, the Bank of England faces pressure to approve an 11th straight rate hike Thursday with annual inflation having reached 10.4 per cent. The succession of Fed rate hikes have also heightened the risk of a recession. Early this month, Powell had told a Senate panel that the Fed was considering raising its rate by a substantial half-point. Some economists have cautioned that even a modest quarter-point rise in the Fed’s key rate, on top of its previous hikes, could imperil weaker banks whose nervous customers may decide to withdraw significant deposits. and Treasury Department agreed to insure all the deposits at Silicon Valley and Signature, including accounts that exceed the $250,000 limit. Still, in its latest statement, the Fed included some language that indicated that its inflation fight remains far from complete. banking turmoil and the takeover last weekend of Credit Suisse by its larger rival UBS. The central bank also signaled that it's likely nearing the end of its aggressive streak of rate hikes. The statement now says “some additional policy firming may be appropriate” — a weaker commitment to future hikes.

Washington — La banque centrale américaine (Fed) a relevé mercredi son taux d'un quart de point de pourcentage, comme attendu, toujours préoccupée par ...

Wall Street avait prudemment débuté la séance mercredi, avant de s’afficher en léger retrait. Les faillites des banques régionales américaines Silicon Valley Bank (SVB), Signature Bank et Silvergate ont créé une vague d’inquiétudes. La Fed a par ailleurs mis à jour mercredi ses prévisions économiques, dont les dernières avaient été publiées en décembre.

Anna Moneymaker Getty Images via Agence France-Presse Le président de la banque centrale américaine, Jerome Powell, a assuré mercredi que l'argent des ...

« Nous devons renforcer la supervision et la régulation » des banques, a concédé M. Après deux séances de rebond en début de semaine, les Bourses européennes ont évolué mercredi autour de l’équilibre et terminé sur une tendance mitigée. La banque centrale américaine a par ailleurs mis à jour mercredi ses prévisions économiques, les précédentes datant de décembre. Gouvernements, banques centrales et régulateurs « L’ampleur de ces effets est incertaine », a-t-elle souligné. Mais l’argent des épargnants est « en sécurité » et le système bancaire reste solide, a assuré en conférence de presse le président de la Fed, Jerome Powell, qui a souligné que l’institution est « résolue à tirer les leçons de l’épisode ».

Une déclaration de la banque et les projections économiques des responsables suggèrent que la fin des hausses de taux est proche. La Fed anticipe pour 2023 une ...

Après deux séances de rebond en début de semaine, les Bourses européennes ont évolué mercredi autour de l'équilibre et terminé sur une tendance mitigée. «Il est important d'être clair: les actionnaires et les créanciers des banques en faillite ne sont pas protégés par le gouvernement. La secrétaire américaine au Trésor, Janet Yellen, a assuré mercredi, devant une commission du Sénat, que «le système bancaire américain était solide». «Nous devons renforcer la supervision et la régulation» des banques, a concédé M. Les faillites récemment des banques régionales américaines Silicon Valley Bank (SVB), Signature Bank et Silvergate ont créé une vague d'inquiétudes. La banque centrale américaine a par ailleurs mis à jour mercredi ses prévisions économiques, dont les dernières avaient été publiées en décembre.

The Fed's benchmark interest rate has contributed to the financial emergency facing U.S. banks. Inflation has fallen significantly from a summer peak, though it ...

economy into a recession and putting millions out of work. The Fed has put forward a string of borrowing cost increases as it tries to slash price hikes by slowing the economy and choking off demand. banking system is sound and resilient," the central bank said. "The U.S. A continuation of rate hikes risks further intensifying the banking crisis, nudging additional financial institutions toward the brink of collapse. The Fed's benchmark interest rate has contributed to the financial emergency facing U.S.

With traders unwilling to make any big bets until they get more clarity from the central bank, the S&P 500 hovered near its 4,000 level. A gauge of US financial ...

Treasury two-year yields plunged 24 basis points to around 3.9 per cent. - The Japanese yen rose 1 per cent to 131.21 per dollar financial heavyweights down almost 5 per cent. - The euro rose 0.9 per cent to US$1.0863 So it’s tough to untangle them,” said Steve Sosnick, chief strategist at Interactive Brokers. The market also gave up gains after Powell said he’s prepared to keep raising rates until inflation shows signs of cooling.

Equity market futures are essentially flat to start the day ahead of the latest policy decision from Jay Powell & Co., where it's widely expected the world's ...

hedge fund Engine Capital is calling on the company to launch a review of strategic alternatives, including a potential sale of its refining and fuel distribution business in order to become a pure-play gas station and convenience store operator. Based on the first summary of deliberations (this is a relatively new initiative the bank has undertaken for transparency’s sake), it won’t be the most detailed document, but it should offer some clues as to how the BoC viewed its decision to potentially diverge from the Fed in this rate-hiking cycle. Now, the Bank of Canada has said it’s comfortable forging its own path and is fine with some degree of divergence, but there are inflationary implications, given the potential for a weaker Canadian dollar relative to the greenback and the volume of goods we import from south of the border. Speaking of central banks, we’re poised to get a bit more insight into the Bank of Canada’s decision to pause on rate increases when the bank releases its summary of deliberations today at 1:30 p.m. It’s a delicate balancing act for Powell, even moreso than it was just a couple weeks ago before higher rates helped spark a crisis of confidence in the banking sector with SVB’s collapse – making sure the bank is still on its path to quash inflation without causing further instability in the banking sector has to be top of mind in the deliberations this week. ](https://www.bnnbloomberg.ca/u-s-futures-steady-in-pre-fed-caution-pound-jumps-1.1898667)Equity market futures are essentially flat to start the day ahead of the latest policy decision from Jay Powell & Co., where it’s widely expected the world’s most influential central bank will increase its benchmark rate by a further quarter point.

After Silicon Valley Bank collapsed the Fed is between a rock and a hard place over whether to raise interest rates to lower inflation or not.

[Why I doubled down on I bonds to protect my sons' inheritance from inflation](https://www.usatoday.com/story/graphics/2023/01/12/i-bonds-inflation-protection-money/11026096002/) [Current Fed funds rate] [The Fed is currently targeting an interest rate range between 4.5% to 4.75%.] [When is the next Fed meeting?] [The Fed's next meeting is May 2-3. [hiking interest rates](https://www.usatoday.com/story/money/2023/03/21/federal-reserve-interest-rate-hike-rates/11511207002/) over fears it could cause a recession. Treasuries, issued from November through April have a composite interest rate of 6.89%.] [Can I purchase I nonds with refund?: ] [What to know about rates, deadline, restrictions](https://www.usatoday.com/story/money/taxes/2023/02/22/how-to-buy-i-bonds-with-tax-refund/11322468002/) ET.] [Dow Jones futures ] [Futures trading for the Dow Jones Industrial Average were moving higher ahead two hours ahead of the opening bell.] [I bond interest rate ] [I bonds, inflation-protected U.S. economy was cooling off and that soaring prices were slowing, Fed officials, including [Chair Jerome Powell](https://www.usatoday.com/story/money/2023/03/07/powell-testimony-senate-congress-interest-rates/11415259002/), signaled the central bank would likely raise interest rates by as much as a 50 basis point at its March meeting to continue curbing stubborn inflation. Inflation remains more than three times the Fed's 2% target.

The Federal Reserve is grappling with a hazier economic picture, clouded by turmoil in the banking industry and still-high inflation, just as it meets to ...

But few economists are sure what the effects would be of a pullback in bank lending. [Silicon Valley Bank failed](https://www.pbs.org/newshour/economy/hundreds-of-lobbyists-pushed-government-to-water-down-banking-regulations) in the second-largest bank collapse in American history. Wall Street traders are betting that a weaker economy will force the Fed to start cutting rates this summer. And while the unemployment rate rose, from 3.4 percent to a still-low 3.6 percent, that mostly reflected an influx of new job-seekers who were not immediately hired. Complicating matters will be the difficulty in determining the impact on the economy of the collapse of Silicon Valley and Signature. The Fed also created a new lending program to ensure that banks can access cash to repay depositors, if needed. Employers added a robust 311,000 jobs in February, the government said earlier this month. If the Fed does raise its key rate by a quarter-point on Wednesday, it would reach roughly 4.9 percent, the highest point in nearly 16 years. Some Fed watchers expect the policymakers on Wednesday to raise that forecast to 5.3 percent. Most Fed watchers expect the central bank to announce on Wednesday afternoon a relatively modest quarter-point hike in its benchmark rate, its ninth increase since March of last year. Yet for the first time in recent memory, there remains some uncertainty about what the Fed will announce when it issues its policy statement at 2 p.m. Watch the event live in the player above.

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in ...

Senate are introducing legislation to replace the Fed’s internal watchdog with one appointed by the president, aiming to tighten bank supervision following the failures of SVB and Signature Bank. central bank, which has operated up to now with an internal inspector general who reports to the Fed board. The collapse of the Santa Clara, California-based bank and Signature Bank, another U.S. “The Fed is probably thinking financial stresses are substituting for future rate increases.” bank failure since the 2008 financial crisis. Fed Chairman Jerome Powell sought to reassure investors about the soundness of the banking system, saying that the management of Silicon Valley Bank “failed badly,” but that the bank’s collapse did not indicate wider weaknesses in the banking system.

“The financial conditions seem to have tightened, and probably by more than the traditional indexes say,” Fed Chair Jerome Powell said in a press conference ...

Many now believe that the Fed will favor stability and therefore opt for a smaller rate hike. "Once you know that there's a fair amount of research about how that works its way into the economy. "It all seems to go hand in hand." The [2-year Treasury](/quotes/US2Y/) was last trading at 3.974% after falling 20 basis points. Fed projections call for just one more hike this year. [10-year Treasury](/quotes/US10Y/) yield was down 11 basis points at 3.492%.

The Fed has continued its cycle of rate increases aimed at stemming inflation but indicated pause could be on horizon.

The Fed also indicated that a pause in interest rate increases may be on the horizon. The outlook for economic growth also fell slightly to 0.4 percent from 0.5 percent in the previous projections. Nevertheless, Wednesday’s policy statement said the US banking system is “sound and resilient”. Critics blamed the Fed’s [relentless rate hikes](/economy/2022/7/25/why-is-us-inflation-soaring-and-will-prices-cool-anytime-soon) for contributing to the failures, part of the biggest banking sector meltdown since the 2008 financial crisis, and some observers speculated that policymakers would be forced to pause the interest rate increases. The latest policy statement omitted the oft-repeated language that “ongoing increases” in interest rates “will be appropriate”. The Fed has continued its cycle of rate increases aimed at stemming inflation, but indicated a pause could be on the horizon.

La Fed anticipe pour 2023 une inflation un peu plus forte que prévu, à 3,6% contre 3,5% (communiqué), mais ajoute que les turbulences bancaires sont « ...

La Fed anticipe une inflation cette année un peu plus élevée que ce qu'elle prévoyait en décembre, à 3,6% contre 3,5%, mais une croissance du PIB un peu plus faible, à 0,4% contre 0,5%. Le principal taux directeur de la Fed se situe désormais dans une fourchette de 4,75 à 5,00%, plus haut niveau depuis 2006, et l'institution prévoit des hausses supplémentaires. La banque centrale américaine (Fed) a opté mercredi pour une hausse modérée de son taux, d'un quart de point de pourcentage, comme attendu, toujours préoccupée par l'inflation, et malgré les turbulences sur le secteur bancaire, qui risquent de «peser» sur l'économie.

The U.S. Federal Reserve pressed ahead with its ninth consecutive interest rate hike, but signalled that it may be near the end of its monetary policy ...

Canadian Imperial Bank of Commerce chief economist Avery Shenfeld said in a note to clients that he expects one more rate hike from the Fed in May, and no rate cuts until next year. A summary of deliberations that informed the bank’s March 8 rate decision, published Wednesday, showed that policy makers remained nervous about inflation getting “stuck materially above the 2 per cent target.” But these concerns were not enough to keep them from halting rate hikes. After raising rates eight consecutive times, Canada’s central bank held its benchmark rate steady at 4.5 per cent earlier this month, making it the first major central bank to pause its monetary policy tightening campaign. At the same time, he said that the Fed and other branches of the U.S. Despite weakening their commitment to tighten monetary policy, FOMC members still see the federal funds rate rising again to the range of 5 per cent to 5.25 per cent, and don’t expect rate cuts until 2024. “We have the tools to protect depositors when there’s a threat of serious harm to the economy or to the financial system, and we’re prepared to use those tools. Meanwhile, the U.S. Financial upheaval tends to lead to a pullback in lending and a drop in consumer and business confidence. The S&P 500 finished down 1.65 per cent while the Nasdaq Composite fell 1.6 per cent. It also pumped liquidity into the financial system through its discount window, loaning banks US$154-billion last week, up from US$5-billion the preceding week and above levels seen in 2008. Powell urged calm on Wednesday, arguing that the U.S. At the same time, they dialled back their language around future

A tightening of bank lending could tilt the balance on the economy and future rate hikes or cuts.

The aggressive rate hikes of the early 1980s set in motion a cascade of bank failures over the course of that decade (referred to as the savings and loan crisis). Even if the Fed succeeds in preventing further bank failures, a key question is how much supply of bank lending will contract in the wake of recent events. Hundreds of banks—albeit mostly very small ones—failed per year in the latter half of the 1980s, yet neither a financial crisis nor a recession occurred. With today’s hike, the federal-funds rate reached a target range of 4.75 to 5.00%, the highest rate since 2007. Thus, the economy isn’t going to be immediately cooled off by financial distress, and hence neither will the inflation problem be immediately removed by recent developments. The Fed believes that it can curb financial distress with tools other than cutting the federal-funds rate, clearing the way for monetary policy to remain restrictive in order to continue to fight inflation. The banking industry learned from the savings and loan crisis to do a better job in hedging interest-rate risk, and today most banks look like they’re weathering the storm of rate hikes in decent shape. Meanwhile, an abrupt liquidity crunch on Credit Suisse [CS](https://www.morningstar.com/stocks/xnys/cs/quote) led to a rushed sale to UBS [UBS](https://www.morningstar.com/stocks/xnys/ubs/quote), signaling a spread of financial turmoil to European markets. The fate of First Republic Bank [FRC](https://www.morningstar.com/stocks/xnys/frc/quote) ($200 billion in assets) stands in jeopardy following a run on its deposits. However, some investors had bet on the Fed abstaining from a hike this meeting in order to help stabilize the financial system. [Fears of a potential financial crisis](https://www.morningstar.com/articles/1144082/why-investors-should-care-about-the-banking-scare) have multiplied following the failure of Silicon Valley Bank on March 10, when the bank was put into receivership after a run on its deposits. The Fed is now struggling to chart the best course forward as the U.S.

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in ...

](/markets/us/us-working-restore-capacity-designate-non-bank-finance-institutions-systemic-2023-03-22/) She also said the Treasury Department has not considered anything to do with guarantees for assets. central bank, which has operated up to now with an internal inspector general who reports to the Fed board. [(SBNY.O)](https://www.reuters.com/companies/SBNY.O), another U.S. "The Fed is probably thinking financial stresses are substituting for future rate increases." ["is not considering insuring all uninsured bank deposits." [(EMG.L)](https://www.reuters.com/companies/EMG.L), [Luke Ellis](/business/finance/more-banks-will-fail-over-next-2-years-says-man-group-ceo-2023-03-22/), said the turmoil was not over and predicted further bank failures. [signs of stress](/markets/rates-bonds/ecb-watch-bank-rates-signs-stress-lagarde-says-2023-03-22/) in bank lending, a day after the ECB warned banks [not to be caught off-guard](/markets/europe/ecb-tells-banks-watch-their-cash-amid-turmoil-2023-03-21/) by rising rates. bank failure since the 2008 financial crisis. [3 billion Swiss franc](/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-16/) ($3.2 billion) weekend [takeover](/business/finance/european-banks-battered-after-credit-suisse-rescue-2023-03-20/) of Credit Suisse by rival UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S). [(PACW.O)](https://www.reuters.com/companies/PACW.O), one of the regional lenders caught up in the market volatility, said it had [raised](/business/finance/pacific-western-bank-explored-capital-raise-says-deposits-have-stabilized-2023-03-22/) $1.4 billion from investment firm Atlas SP Partners. [(JPM.N)](https://www.reuters.com/companies/JPM.N) CEO Jamie Dimon [is scheduled to meet](/business/finance/jpmorgan-ceo-dimon-scheduled-meet-white-houses-brainard-during-dc-trip-source-2023-03-22/) with Lael Brainard, the director of the White House's National Economic Council, during the executive's planned trip to Washington, according to a person familiar with the situation. midsized lender, prompted a rout in banking stocks as investors worried about other ticking bombs in the banking system and led to UBS Group AG's [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) takeover of 167-year-old Credit Suisse Group AG [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) to avert a wider crisis.

Chamath De Silva, a senior fund manager for Betashares Holdings in Sydney: “Asian markets will likely take the lead from the US, so bonds up, stocks down, ...

“The Asian market will likely go through a direction-searching journey ahead to reprice the more dire outlook. If that hold true, those capital flows into Indonesia and the rest of Asia can continue and support currencies across the region.” You can also view it as the top policy makers’ confession to the ‘unknown unknowns’.” Look for the Korean won, Indonesian rupiah and Philippine peso to lead the charge.” It’s impossible to predict whether the stresses seen at Silicon Valley Bank and Credit Suisse Group “are the start of a series of dominoes. “The more important meeting of today was Yellen again installing no confidence in a market yearning for it. “No news is good news when it comes to the regional banking situation in the US. I think some of the higher betas can do well in the Asia session. “Expect bonds to be bid, equities to have a weak day again. Treasury yields may fall further and Treasuries, in particular the front end of the curve, are a buy. We got the acknowledgment from Jerome Powell that tighter credit conditions will do a better job of slowing the economy than rate hikes.” I would avoid financials and companies with a lot of US dollar debts.”

La banque centrale américaine a relevé son taux directeur de 0,25%. Les turbulences sur les banques pourraient «peser» sur l'économie, a averti son ...

Le communiqué ajoute que d'autres relèvements de taux sont envisagés au cours des prochains mois. En alerte, du fait de la crise de confiance qui frappe certaines banques régionales, la banque centrale américaine (Fed) n'a relevé son taux directeur que de 0,25% mercredi soir. La banque centrale américaine a relevé son taux directeur de 0,25%.

Regional bank stocks in the U.S. also fell after Treasury Secretary Janet Yellen said in response to a question that officials are not considering a 'blanket ...

The rally marks a reversal from Coinbase's underperformance throughout 2022, when its shares [dropped](https://www.coindesk.com/markets/2023/03/22/ark-invest-sells-135m-coinbase-shares-after-steady-buying-streak/) 86%. [Ether ](https://www.cnbc.com/quotes/ETH.CM=/)also gained 0.7% to $1,813.52. [not considering](https://www.cnbc.com/2023/03/22/treasury-will-do-whatever-it-takes-to-ensure-savings-remain-safe-yellen-to-tell-senators-.html) expanding bank deposit guarantees beyond its current limit. [hiked rates by another 25 basis points](https://www.cnbc.com/2023/03/22/fed-rate-hike-decision-march-2023.html). [Coinbase Global](/quotes/COIN/) were earlier up 0.4%, on pace for its 8th straight positive day after the stock has gained 37% so far this month. In Japan, the [Nikkei 225](/quotes/.N225/) shed 0.21%, and the Topix slid 0.37%. The increase takes the benchmark federal funds rate to a target range between 4.75%-5%. He expects currencies in Asia and emerging markets to benefit from a weakening dollar as well. That's above the 143.89 billion yuan forecast by FactSet. after Treasury Secretary Janet Yellen said the FDIC was "I think the fact that they raise rates yet again is going to be a big mistake. also fell after Treasury Secretary Janet Yellen said in response to a question that officials are [not considering](https://www.cnbc.com/2023/03/22/treasury-will-do-whatever-it-takes-to-ensure-savings-remain-safe-yellen-to-tell-senators-.html) a 'blanket insurance' for bank deposits.

U.S. stock index futures climbed on Thursday, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes ...

Securities and Exchange Commission (SEC) [threatened to sue](/legal/coinbase-issued-wells-notice-by-sec-2023-03-22/) the crypto exchange over some of its products. Data on home sales is also expected after the opening bell. On the data front, a reading due at 8:30 a.m. [(COIN.O)](https://www.reuters.com/companies/COIN.O) slid 12.9% after the U.S. [(PACW.O)](https://www.reuters.com/companies/PACW.O), Truist Financial Corp [(TFC.N)](https://www.reuters.com/companies/TFC.N) and Western Alliance Bancorp [(WAL.N)](https://www.reuters.com/companies/WAL.N) also gained between 0.8% and 3%. [(REGN.O)](https://www.reuters.com/companies/REGN.O) jumped 8.6% on [promising results](/business/healthcare-pharmaceuticals/sanofi-regenerons-dupixent-meets-endpoints-clinical-trial-2023-03-23/) on its blockbuster asthma drug Dupixent from a lung disease trial. [(AAPL.O)](https://www.reuters.com/companies/AAPL.O), Microsoft [(MSFT.O)](https://www.reuters.com/companies/MSFT.O) and Amazon.com [(AMZN.O)](https://www.reuters.com/companies/AMZN.O) jumped over 1% each in premarket trading. [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) [Bank of America](/markets/us/bofa-ubs-trim-forecast-fed-funds-rate-amid-banking-crisis-2023-03-23/) [(BAC.N)](https://www.reuters.com/companies/BAC.N) and UBS [(UBS.N)](https://www.reuters.com/companies/UBS.N) now see the Fed funds rate target peaking at 5-5.25% in May compared to earlier forecasts of 5.25-5.5%. [(NVDA.O)](https://www.reuters.com/companies/NVDA.O) rose 1.9% after Needham raised its price target on the chipmaker on likely benefit from near-term data center strength. [(FRC.N)](https://www.reuters.com/companies/FRC.N) rose 2% after slumping on Wednesday following Treasury Secretary Janet Yellen's remark that there was [no discussion](/business/finance/first-republic-could-rally-if-fdic-insures-deposits-analyst-2023-03-22/) on insuring all bank deposits.

For the first time in a year the Federal Reserve has left its next policy step in doubt as its policymakers weigh the risks of continued high inflation ...

After raising rates at a record pace over the past year "there is a clear recognition that it may be time to pause," said Rick Rieder, chief investment officer of global fixed income at BlackRock. officials and prompted the Fed to rapidly stand up a new lending facility for banks facing unusual withdrawal demands. Some lawmakers have proposed legislation to toughen the Fed's oversight. ... This is 12 days ago," that a pair of bank failures reshaped the financial landscape facing the central bank, with potential implications for the real economy and the path of inflation. But uncertainty about the health of the banking industry has now touched off a scramble by U.S. But for the first time since then, it opened the door to a possible pause in the tightening, while keeping its options open for a further increase as well. a question of not knowing at this point," Powell told reporters after the meeting. central bank officials will themselves be in the dark until more is known about how banks might change their lending behavior in response to the failure of two regional lenders caught out by unexpected deposit runs. Senate Banking Committee is holding hearings on the bank failures next week. credit crunch that could slow the economy in sharp and potentially unexpected ways. money market funds attracted their biggest weekly inflows in nearly three years. Register for free to Reuters and know the full story

European and Asian markets were mixed during Thursday trade as investors digested the decision by the US Federal Reserve to raise its main interest rate by ...

[(N225)](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link) closed 0.2% lower. London’s FTSE 100 [(UKX)](https://money.cnn.com/data/world_markets/ftse100/?source=story_quote_link) slid back 1.1%. Still, the Fed also warned that rate cuts weren’t coming this year. “Looking ahead, while we see fundamental value in Asia-ex Japan stocks … Asian shares had opened broadly lower, tracking losses on Wall Street. One of the top gainers was internet giant Tencent, which ended the day up 8.2% after reporting a strong rise in its online advertising business in the December quarter on Wednesday. [(DAX)](https://money.cnn.com/data/world_markets/dax/?source=story_quote_link) dropped 0.8%, while France’s CAC 40 [(CAC40)](https://money.cnn.com/data/world_markets/cac40/?source=story_quote_link) fell 0.7%. South Korea’s Kospi was 0.3% higher, while Australia’s S&P ASX 200 closed 0.7% lower. [(DVS)](https://money.cnn.com/quote/quote.html?symb=DVS&source=story_quote_link) slipped about 1.7%. [(HSI)](https://money.cnn.com/data/world_markets/hang_seng/?source=story_quote_link) index closed 2.3% higher, leading gainers in Asia.

Turmoil in banking sector aids central bank's fight against inflation by tightening financial conditions.

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