One of the biggest near-term risks to the financial system would be if inflation pressures were more stubborn than expected, a Fed report said Monday.
One of the biggest near-term risks to financial stability in the U.S. would be further interest-rate hikes, according to a semiannual Federal Reserve report on financial stability released Monday.“If inflationary pressures prove to be more stubborn than anticipated,... One of the biggest near-term risks to financial stability in the U.S. would be further interest-rate hikes, according to a semiannual Federal Reserve report on financial stability released Monday.
Higher rates would increase banks’ funding costs as deposit rates continue to rise. At the same time, higher funding costs would pressure the profitability of banks with large portfolios of fixed-rate assets that were acquired when interest rates were much lower, the report said.Other near-term risks were “banking-sector stress, commercial and residential real estate and geopolitical tensions,” the report said.
Many respondents noted heightened market scrutiny over deposit stability and declines in the fair value of legacy long-duration fixed-rate assets that could trigger further contagion and market volatility.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
One-on-one with Formula Drift co-founder Jim LiawSouthern California’s own Jim Liaw is the co-founder of Formula Drift. He is one of the only Asian Americans in a major race series leadership role – a mantle he does not take too lightly.
Consulte Mais informação »
Crash between motorcycle and school van leaves one driver dead, one injuredPolice are still investigating the crash, but they believe that speed was a primary factor in the collision.
Consulte Mais informação »
AL.com wins two Pulitzer Prizes, one for local reporting, one for commentaryJohn Archibald, Ashley Remkus, Ramsey Archibald and Challen Stephens won the 2023 Pulitzer Prize in Local Reporting for an investigation of predatory policing in Brookside. Columnist Kyle Whitmire won the 2023 Pulitzer Prize in Commentary for the series State of Denial.
Consulte Mais informação »
Central Banks: Further hikes at least from the ECB – NordeaEconomists at Nordea continue to see further hikes at least from the ECB, and think financial markets are pricing in too many rate cuts ahead. Prematu
Consulte Mais informação »
Fed will 'definitely' pause hikes, but the cycle is not yet done, Standard Chartered CEO saysU.S. Federal Reserve looks set to temporarily pause its aggressive interest rate hikes, but it has not yet finished the job, Standard Chartered said Monday.
Consulte Mais informação »