'When the Fed increases interest rates, it exposes any fissures in the financial markets or the economy....the recent tightening...contributed to the recent stress in the banking system,' said one economist. Fed is expected to raise interest rates 0.25%:
) early Monday morning, the latest domino to fall in the bank crisis that has seen four banks collapse sine early March.
"Right now you're not seeing any strong signs of those effects happening, but it's something I’m very much watching for," Williams said. "I don't think anything has been put to bed because banks are still impaired by losses on long-term securities," said Tilley. "Those unrealized losses are still there and they will affect banks' decisions about lending, and they have to be very cautious.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Indexes fall 1% as regional banks tumble, investors fret before FedMajor US stock indexes fell more than 1% each amid renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates
Read more »
Forex Today: RBA Makes Surprise 0.25% Rate HikeToday's Forex news: The Reserve Bank of Australia unexpectedly raised its Cash Rate by 0.25% citing persistently high inflation
Read more »
Federal Reserve's employee stock trading rules not strict enough: Agency watchdogThe federalreserve does not have enough restrictions on how employees trade in the stock market despite the agency having some of the most rigid staff rules, according to a government watchdog.
Read more »
Gold Price Forecast: XAU/USD bulls flex muscles as Federal Reserve announcements loomGold price (XAU/USD) seesaws at the highest levels in two weeks, making rounds to $2,015-20 during early Wednesday, after rising the most in a month t
Read more »
Here's what to expect from today's Federal Reserve announcementWhere the intrigue comes in is how the central bank proceeds from here.
Read more »