Page 32 - Us Federal Reserve

US recession 'imminent', time to book profits, says BofA Securities

The brokerage says that with markets currently near their peaks, it "leaves room for correction with the onset of a recession in the US".

Powell signals a rate pause in June, says Fed can afford to watch data

Officials raised rates by a quarter percentage point earlier this month to a target range of 5 to 5.25 per cent and signaled they could pause. They next meet June 13-14

Why Fed rate-hike pause may not be good for stocks as Wall Street hopes?

The possible end to the Federal Reserve's long campaign of rate hikes appears like an oasis to beaten-down Wall Street investors, but is it a mirage? With inflation cooling from its peak last summer, Wall Street overwhelmingly assumes the central bank will hold rates steady for the first time in more than a year when it meets next month. High rates knock down inflation by slowing the economy, raising the risk of a recession and hurting prices for all kinds of investments. The stock market has held steady in recent weeks as investors bet on a pause by the Fed, offsetting a long list of other concerns, from cracks in the US banking system to the US government's edging toward what could be a catastrophic default on its debt. History seems to be on Wall Street's side. Going back to the 1980s, the S&P 500 has jumped an average of nearly 6 per cent in the three months after the Fed makes its final increase in a rate-hike campaign. But something makes today different than those four ...

How US banks, Fed are prepping for default and the chaos which might follow

A severe and prolonged global economic recession would be all but guaranteed, and the reputation of the US and the dollar as beacons of stability and safety would be further tarnished

Fed, social media contributed to bank's collapse, says SVB's former CEO

Becker said comparisons by the media between SVB and Silvergate Capital Corp., which announced plans to wind down just days before his bank's seizure, contributed to SVB's failure

Anatomy of a bank failure

A radical change is necessary in the appointment of independent directors in India in light of the extensive failures in oversight and management of US banks

Markets too optimistic on interest rate reversal, says Hechler-Fayd'herbe

Hechler-Fayd'herbe said it's not the time for investors to relax because there is quite a lot of uncertainty beneath the surface, whether it is on the geopolitical front or the economic outlook

Banks report tougher credit standards in wake of failures: US Fed report

A Federal Reserve report on Monday showed that banks raised their lending standards for business and consumer loans in the aftermath of three large bank failures, a trend that could slow the economy in coming months. The report, known as the senior loan officers survey, asked banks if they have tightened their lending standards by taking steps such as demanding higher credit scores, charging higher interest rates, or other moves that altogether would make it harder for businesses and consumers to obtain loans. About 46 per cent of all banks said they had raised standards for business loans known as commercial and industrial loans, up from just under 45 per cent in the previous quarter. That increase was not as dramatic as in previous quarters, but banks were tightening credit before the bank failures. A year ago, slightly more banks were easing credit standards than increasing them. The survey respondents were 65 US banks and US branches of 19 foreign banks. The results were gather

Goldman Sachs joins Barclays in bet against Fed rate cuts this year

Positioning around policy pricing for this year has entered a key period this week, with April inflation gauges slated to be released Wednesday and Thursday

Credit crunch, El Nino & DC deadlock to challenge Powell's recession bet

In Powell's view, the gravity-defying strength of American labor markets is smoothing the way for a soft landing, even after five percentage points of interest-rate hikes in little over a year

Sensex soars 556 pts, ends at 2023 high; Nifty tops 18,250; HDFC twins lead

CLOSING BELL: The NSE Nifty 50 rallied 166 points. Index heavyweights HDFC, HDFC Bank and Reliance Industries contributed more than 60 per cent of the gain for Sensex.

Top 5 headlines: Fed hike, Ajay Banga to become World Bank president & more

Business Standard bring you top news headlines at this hour

US Fed raises key rate by 25 bps, hints may pause hikes amid bank turmoil

The Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years. But the Fed also signalled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive. In a statement after its latest policy meeting, the Fed removed a previous sentence that had said some additional rate hikes might be needed. It replaced it with language that said it will consider a range of factors in determining the extent to which future hikes might be needed. The Fed's rate increases over the past 14 months have more than doubled mortgage rates, elevated the costs of auto loans, credit card borrowing and business loans and heightened the risk of a recession. Home sales have plunged as a result. The Fed's latest move, which raised its benchmark rate to roughly 5.1%, could further increase borrowing costs. Still, the Fed's statement offered little ...

US Fed decides unanimously to hike key benchmark rates by 25 bps

The Federal Reserve signaled it may pause further increases

Sensex snaps 8-day winning run, ends 161 pts lower ahead of Fed outcome

Stock market live: Overnight in the US, banking shares declined as investors fret over the stability of small regional banks. The Dow Jones and Nasdaq fell 1.08% each while the S&P 500 shed 1.16%

Sensex extends rally to eighth day, ends 242 pts up; Auto, IT stocks shine

Stock market live: Market action will be guided by global cues following the takeover of the fallen US lender First Republic Bank on Monday by JP Morgan Chase

First Republic in limbo as US Federal Reserve juggle bank's fate

Regulators searched for a solution to First Republic Bank's woes over the weekend, hoping to find a way forward before US stock markets opened on Monday. San Francisco-based First Republic has struggled since the collapse of Silicon Valley Bank and Signature Bank in early March, as investors and depositors grew increasingly worried the bank may not survive as an independent entity. The bank's stock closed at USD 3.51 on Friday, a fraction of the roughly USD 170 a share it traded for a year ago. It fell further in afterhours trading. World markets have periodically been shaken by worries over turmoil in the banking industry since Silicon Valley Bank's collapse. On Monday markets in many parts of the world were closed for May 1 holidays. The two markets in Asia that were open, in Tokyo and Sydney, rose on Monday while US futures were little changed, with the contract for the S and P 500 up nearly 0.1 per cent. First Republic has been seen as the bank most likely to collapse next due

Last rate hike? Fed's Jerome Powell expected to face more opposition

With inflation as high as 9 per cent in the past year, Powell's colleagues were all-in on the fight to curb price pressures

US Fed says it failed to take forceful action on Silicon Valley Bank

US regulators are reported to be working on a potential rescue for the struggling firm, which was the 14th largest bank in the US at the end of last year

Federal Reserve faults Silicon Valley Bank execs, itself in bank failure

Silicon Valley Bank failed due to a combination of extremely poor bank management, weakened regulations and lax government supervision, the Federal Reserve said on Friday, in a highly-anticipated review of how the central bank failed to properly supervise the bank before it collapsed early last month. The report, authored by Federal Reserve staff and Michael Barr, the Fed's vice chair for supervision, takes a critical look at what the Fed missed as Silicon Valley Bank grew quickly in size in the years leading up to its collapse. The report also points out underlying cultural issues at the Fed, where supervisors were unwilling to be hard on bank management when they saw growing problems. The Federal Reserve did not appreciate the seriousness of critical deficiencies in the firm's governance, liquidity, and interest rate risk management. These judgments meant that Silicon Valley Bank remained well-rated, even as conditions deteriorated and significant risk to the firm's safety and ...