Sen. Tim Scott, R-S.C., right, greets Michael Barr, off camera, vice chair for supervision of the Board of Governors of the Federal Reserve System, in Dirksen Building on Tuesday, March 28, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC … Read more
As the cost of borrowing rises, investors should avoid companies that have a lot of debt on their balance sheets, Evercore ISI warned in a note Sunday. Borrowing costs have been moving higher since the Federal Reserve began hiking interest rates last year in an effort to tame inflation. Then, the bank crisis hit earlier … Read more
Citi economists said, “We have long been discussing our view that China can be a major growth hedge this year – if anything, recent global banking stresses perhaps have strengthened this thesis.” The decision by the People’s Bank of China to cut its required reserved ratio showed “reassurance of policy support amid global volatilities,” Citi … Read more
Federal Reserve Board Chairman Jerome Powell holds a news conference following a Federal Open Market Committee meeting at the Federal Reserve on March 22, 2023 in Washington, DC. Alex Wong | Getty Images News | Getty Images This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors … Read more
The Federal Reserve is raising its key interest rate 0.25 percentage point, underscoring central bankers’ commitment to fighting inflation even if that heightens the financial pressure on the country’s banks. The Fed’s benchmark rate is rising to a range between 4.75% and 5%, the bank’s rate-setting body said Wednesday in a statement. That’s the highest … Read more
Illustration: Aïda Amer/Axios The Fed has three overarching goals: stable prices, maximum employment and financial stability. Right now, it is failing at No. 1 and risks falling short on No. 3. However, the great dilemma it faces is that its anti-inflation tools work at cross purposes with the ones it uses to prevent a financial … Read more
The Federal Reserve likely will approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts. A rate increase would come just over a week after the Fed other regulators rolled out an emergency lending facility to halt a crisis of confidence in the banking industry. “This might be … Read more