A security guard at a construction site at a bank branch of Credit Suisse Group AG in Bern, Switzerland, Monday, March 20, 2023. Stefan Wermuth | Bloomberg | Getty Images This report comes from today’s CNBC Daily Open, our new international markets newscast. CNBC Daily Open updates investors on everything they need to know, wherever … Read more
US Treasury yields fell on Monday as investors considered stability in the banking sector after Swiss bank UBS agreed to buy rival Credit Suisse. As of 5:26 a.m. ET, the 10-year Treasury yield was down more than six basis points at 3.3319%. The 2-year Treasury yield was trading at around 3.7155% after falling around 13 … 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
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
A sign is displayed outside a First Republic Bank office on March 16, 2023 in San Francisco, California. Justin Sullivan | Getty Images News | Getty Images This report comes from today’s CNBC Daily Open, our new international markets newscast. CNBC Daily Open updates investors on everything they need to know, wherever they are. Like … Read more
The chaos in the banking sector has led to calls on the Federal Reserve to suspend or even reverse its pace of monetary policy tightening. Economic data for February, meanwhile, showed that the labor market remains strong and inflation remains pervasive, underscoring the work that still needs to be done by the central bank to … Read more
Evercore ISI likens banking stress to another critical time on Wall Street: the year of the savings and loan crisis and the epic crash. “Think you would see financial stress like this building up in the system 24 hours after [Fed] President Powell has suggested he can go 50 [basis points] the 22nd tells you … Read more
There is a saying that the Federal Reserve raises interest rates until something breaks. A big surprise over the past year had been that nothing had broken. The situation could force Fed Chairman Jerome Powell and his colleagues to choose which issue demands central bank priority. “We have always said that the only thing that … Read more