United States Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed 2024 budget request, on Capitol Hill in Washington, DC, March 16, 2023. Andrew Caballero – Reynolds | AFP | Getty Images Treasury Secretary Janet Yellen said on Tuesday the government was ready to provide new deposit guarantees if the banking … Read more
Here are the most important information investors need to start their trading day: 1. Relief Rally UBS’s “forced marriage” to Credit Suisse might have done the trick, at least for now, as U.S. stock markets rallied on Monday after the latest moves to strengthen the global banking system. Now Wall Street is focused almost entirely … Read more
A credit crunch is a significant tightening of lending standards between banks. Loans are more difficult to obtain and become more expensive. The banking crisis triggered by the failures of Silicon Valley Bank and Signature Bank will likely lead small and medium-sized institutions to prioritize a healthy balance sheet. The prospect of a recession led … Read more
UBS buys troubled Credit Suisse for $3.2 billion. The markets are preparing for the next Fed decision. Chinese Xi Jinping visits Russian Vladimir Putin in Moscow. A photograph shows a logo of Swiss giant bank UBS in front of a Credit Suisse bank logo in Zurich on March 19, 2023. Fabrice Cofrini | AFP | … Read more
The Federal Reserve is meeting this week to decide its next move on interest rates just as its year-long fight against inflation is colliding with a crisis in the financial sector. The Fed’s next move will be closely watched as recent bank failures bring back memories of the 2008 financial crisis. Even ahead of Wednesday’s … Read more
Illustration: Aida Amer/Axios The Fed has three primary objectives: stable prices, maximum employment and financial stability. Right now it’s failing at No. 1 and may not reach No. 3. However, the big dilemma he faces is that his anti-inflationary tools work at odds with those he uses to prevent a financial crisis. The central bank … Read more
Credit Suisse is undergoing a massive strategic overhaul aimed at restoring stability and profitability after a litany of losses and scandals, but markets and stakeholders still seem unconvinced. On Friday, the Financial Times reported that UBS was in talks to take over all or part of Credit Suisse, citing several people involved in the talks. … Read more
The Federal Reserve will likely approve a quarter-percentage-point hike in interest rates next week, according to market prices and many Wall Street pundits. A rate hike would come just over a week after other regulators rolled out an emergency lending facility to end a crisis of confidence in the banking sector. “Maybe this is one … Read more
US Federal Reserve Chairman Jerome Powell speaks to reporters after the Fed raised its interest rate target by a quarter of a percentage point, during a news conference at the Federal Reserve Building in Washington , on February 1, 2023. Jonathan Ernest | Reuters Even with the banking sector turmoil and uncertainty ahead, the Federal … Read more
Nvidia’s A100 GPU, used to train ChatGPT and other generative AIs, is displayed at the Nvidia Headquarters Demo Center in Santa Clara, California on February 9, 2023. Katie Tarasov Find out which companies are making headlines in pre-market commerce. FedEx – Shares rose 11.6% after the company’s third-quarter earnings beat analysts’ expectations. FedEx reported adjusted … Read more