Fed watching US banking sector closely to gauge need for further rate hikes

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Fed watching US banking sector closely to gauge need for further rate hikes
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The recent banking crisis in the US saw the sudden collapse of three banks in the world's biggest economy – Silicon Valley Bank and Signature Bank in March, followed by First Republic Bank on May 1. theSun theSundaily banks rates central business

The US Federal Reserve is keeping watch over troubles in the US banking sector to gauge the need for further rate hikes, said a top official of the US central bank on Friday, reported Anadolu.

“A rapid, sizeable increase in interest rates resulting from persistently elevated inflation contributed to stresses in the banking system that we needed to address using our financial stability tools,“ he added. Waller, however, noted that although lending conditions imposed by banks have tightened since March, “it is still not clear that recent strains in the banking sector materially intensified the tightening of lending conditions.”

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