Despite some relative calm, the financial stress resulting from the sixteenth-largest bank's collapse in the United States continues. Jerome Powell, the Chairman of the Federal Reserve, stated that "We are still trying to understand how it failed. We are trying to identify what went wrong." Credit Suisse in Switzerland experiencing similar problems after Silicon Valley Bank (SVB) has only heightened concerns. SVB RESCUE PLAN Following its collapse, SVB put the Federal Reserve on alert and caused
US Federal Reserve interest rate hike: Central banks across the globe have a few lessons to absorb from the recent US experience. Inflation reduction with interest rate hikes can be likened to a Sisyphean task since it is a very laborious process and seems almost impossible to complete in haste. The Fed embarked on this path more than a year ago, in March 2022, with the first
The second fortnight of March witnessed four notable bank failures. Two of them were in USA with Silicon Valley Bank (SVB) starting the scare a week earlier in regard to.