things to know with this tuesday, march 14th. all eyes will stay on wall street where they have been locked as the race is on to avoid the collapse of other regional u.s. banks. several have been suffering steep stock drops on monday, even as the government came out, president biden himself, trying to calm nerves of financial support. all this turmoil is coming as the fed is awaiting a highly-anticipated inflation report that we re expected to get this morning. no relief. what is going on? dualing storms set to pound the east and the west coast, both coasts, nor easter forecast to bring heavy rain, wind, snow to millions in the northeast. california bracing for yet another round of severe flooding. also this, governor ron desantis breaking from many in his own party on the war in ukraine. likely presidential candidate told fox news that protecting ukraine is not vital to u.s. interests. instead, he called it is a distraction to bigger challenges here at home. also, sena
Ag real estate values in the area covered by the Kansas City Fed stayed strong through the end of 2023, according to the latest survey of bankers in the area covered by the Tenth Federal Reserve District.
dozen banks plummeted, even after president biden tried to assure markets before the open. americans can rest assured that our banking system is safe. your deposits are safe. let me also assure you we will not stop at this. we ll do whatever is needed. not assure a lot of spooked customers. look at the dramatic fallout yesterday for these four banks as we just said, shares of first republic were down 60%. we ll get new inflation numbers this morning in just about two hours. the fed is face an incredibly balancing act of raising interest rates to fight inflation while also trying to prevent more banks from collapsing. our chief business correspondent christine romans is here this morning. i mean, it s like they cannot get a worse scenario. and today we re going to get core inflation numbers and then the question becomes, does the fed address inflation head on? or do they try to prevent more bank collapses? and is this whole banking
drama disinflationary taking pressure off the fed. let s look what happened to the regional banks yesterday. they really got slammed. 60% move, as you know, for a stock in one day is real it shows extreme concern about what s on the balance sheets of these banks and also concern that depositors will walk away and go to a bigger bank. we were told by a senior treasury official yesterday that, in fact, those deposit outflows are slowing. that s good news for these. and this morning, i m seeing pre-market trading of these banks they re up 20%, 10%. so we ll look for some stabilization there today. is it something that is so fundamentally different from 2008 the fact that we re not talking about toxic assets? oh, yeah. these are the opposite of toxic assets. these banks have treasury securities and mortgage-backed securities on their books. and so they re just trying with the fed having raised interest rates so aggressively, now those are worth a lot less and trying to balance that
can the fed do both at the same time, keep raising rates to attack inflation without making these what are safe securities, fixed income securities, less attractive to potential buyers? i think there s the feeling the fed is going to go more slowly. this is the delicate balancing act of the fed right now. the next meeting is march 22nd. we have this big cpi report that s coming today. and the feeling is, look, the chances of no rate hike has risen dramatically since this banking drama. now a lot of people are thinking it will be more like 25 bases points. just a week ago the fed chair was preparing us for 50 bases points. what i keep hearing is all of this is disinflationary. this is in a weird way not what the fed designed but working towards the fed s goal of cooling inflation. why? there are skeptics of that argument? there are. if they re going to slow lending, right if you ll have this fro thi part of the market,