Friday, September 29, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business

Fed aims to balance banking woes and inflation in decision

AFPbyAFP
March 19, 2023, 6:50 pm
in Business, Economy & Trade
Reading Time: 3 mins read
A A
Share on FacebookShare on TwitterShare on Email

WASHINGTON—US central bankers face an unenviable task when they gather in Washington next week: tackling persistent inflation without adding to financial sector turmoil after Silicon Valley Bank’s rapid collapse.

The Federal Reserve has raised rates eight times since last year in the face of decades-high inflation as it looks to cool the economy without tipping it into a recession.

While Fed Chair Jerome Powell earlier signaled willingness to speed up interest rate hikes if needed, most analysts and traders see a small rise of 25 basis points as the most likely outcome on Wednesday at the end of the Fed’s two-day meeting.

A quarter-percentage-point hike would match the magnitude of the Fed’s last increase in February.

With fears of contagion after the rapid failures of three midsized lenders earlier this month, a minority of observers also believe the Fed could halt its rate increases.

A catalyst for the demise of Silicon Valley Bank (SVB) was the Fed’s quick shift from near-zero interest rates to steep hikes, a reversal that swiftly lowered the value of SVB’s holdings linked to long-term US Treasury bonds.

Given the market turbulence, a bigger, 50 basis-point hike is now “off the table,” Citigroup global chief economist Nathan Sheets said in an interview with AFP.

“My expectation is, it’s going to be 25 but it’s going to be a debate—and where markets are next Tuesday and Wednesday is going to be critical,” he said.

From 50 basis points to zero

SVB’s dramatic implosion this month was the largest banking failure since the 2008 financial crisis.

The failure of the California high-tech lender on March 10, and the collapse of New York’s Signature Bank a few days later, sparked a rout in regional banking stocks and led many analysts to conclude that the Fed will abandon an anticipated increase in the pace of hikes.

Powell told senators earlier this month that it may be necessary to increase the benchmark lending rate to tame the “widespread” inflationary pressures keeping price rises elevated above the bank’s long-run target of two percent. AFP

Futures traders responded by pricing in a 50-basis-point rise, according to CME Group.

But the financial stress brought to light by SVB’s failure caused a dramatic turnaround in expectations.

The strains in the financial sector will likely have weakened the Fed’s resolve to move more aggressively on March 21 and 22, Bank of America US economist Michael Gapen said on Friday.

“We think recent events have changed the debate,” he wrote in a note to clients. “We think the debate is now between a 25 (basis points) rate hike in March, or none at all.”

Cooler data emerges

Data for February shows that some corners of the American economy are now beginning to contract — which eases pressure on the Fed — while the consumer price index measure of inflation slowed slightly to an annual rate of 6.0 percent.

US retail sales and wholesale prices slipped last month, providing some respite for the Federal Open Market Committee to consider when it mulls another interest-rate hike.

But the Fed’s favored measure of inflation showed an annual increase in January, suggesting there is still a long way to go before price rises are brought back under control.

Turmoil in the banking sector is not over either, with many regional banks seeing their stocks plunge again at the end of the week despite intervention by US regulators and some of Wall Street’s biggest banks.

“At a minimum, stress in financial markets suggests the Fed should proceed with caution,” Bank of America’s Gapen said.

Tags: InflationSilicon Valley BankUS central bankersUS Federal Reserve
ADVERTISEMENT
AFP

AFP

Related Posts

Cebu Pacific eyes Boeing planes as Airbus engine issue affects fleet

byDarwin G. Amojelar
September 28, 2023, 7:35 pm
0
8
No-hassle travel hacks with budget-friendly accommodation

Cebu Air Inc., the operator of low-cost carrier Cebu Pacific, said Thursday it plans to purchase narrow-body aircraft from US...

Read more

PH improves 3 spots to rank 56th in global innovation index

byOthel V. Campos
September 28, 2023, 7:30 pm
0
8
PH ranks 9th globally in IP innovation ranking

The Philippines climbed three spots to rank 56th in the Global Innovation Index (GII) 2023 out of 132 economies included...

Read more

Foreign tourists reached nearly 4m as of Sept. 27 in line with 2024 goal

byOthel V. Campos
September 28, 2023, 7:25 pm
0
8
CONCEPCION INDUSTRIAL CORPORATION: Notice of the Annual Stockholders’ Meeting

Department of Tourism (DOT) Secretary Christina Frasco said Thursday international visitor arrivals reached 3.97 million as of Sept. 27, representing...

Read more

SEC streamlines disclosure requirements

byJenniffer B. Austria
September 28, 2023, 7:20 pm
0
8
SEC files charges against four firms soliciting investments

The Securities and Exchange Commission (SEC) eased the disclosure requirements for companies seeking to raise funds through the capital market....

Read more

Vivant unit signs contract with Bataan solar developer

byAlena Mae S. Flores
September 28, 2023, 7:15 pm
0
8
Vivant unit signs contract with Bataan solar developer

COREnergy Inc., a wholly-owned subsidiary of Vivant Energy Corp., signed a 20-year power supply agreement with Samal Solar Renewable Energy...

Read more

Stocks extend advance on bargain hunting

byJenniffer B. Austria
September 28, 2023, 7:10 pm
0
8
Stock market surges; PLDT, Globe advance

Philippines stocks extended its climbed to sixth consecutive trading day on continued bargain hunting and foreign buying. The Philippine Stock...

Read more

Print Edition

View More

Recent Posts

  • House okays P5.768-t post-pandemic budget
  • ‘OVP intel funds invalid but not impeachment ground’
  • Q3 pro-admin sentiment down to 43%—survey
  • Congress passes several crucial priority measures
  • Marcos, Macron tackle WPS security issues, bilateral ties
  • Socorro ‘cult’ leader held in contempt
  • P3.6-b shabu seized in Pampanga
  • Meta putting AI in smart glasses

Advertisement

Latest News

Socorro ‘cult’ leader held in contempt

byMacon Ramos-Araneta
September 29, 2023, 12:45 am
0
8
Marcos, Macron tackle WPS security issues, bilateral ties

A Senate committee on Thursday cited Socorro Bayanihan Services Inc. (SBSI) leader Jey Rence Quilario, also known as Senior Agila,...

Read more

P3.6-b shabu seized in Pampanga

byRey E. Requejoand1 others
September 29, 2023, 12:40 am
0
8
Southwoods nails Seniors’ Fil golf crown

Law enforcement agencies have seized P3.6 billion worth of methamphetamine hydrochloride or "shabu" in a warehouse in Mexico City, Pampanga,...

Read more

Meta putting AI in smart glasses

byAFP
September 29, 2023, 12:35 am
0
8
Facebook-parent Meta appeals UK ruling on Giphy tie-up

Meta chief Mark Zuckerberg on Wednesday said the tech giant is putting artificial intelligence into digital assistants and smart glasses...

Read more

Ateneo remains top PH school in global rankings

byGabriellea B. Pariño
September 29, 2023, 12:30 am
0
8
Ateneo rated as country’s top learning institution

The Ateneo de Manila University remained the top school in the Philippines, according to the latest global rankings published by...

Read more

MTRCB upholds 12-day suspension of ‘It’s Showtime’

byNickie Wang
September 29, 2023, 12:23 am
0
8
MTRCB says it needs to ‘widen’ its jurisdiction of video streaming

The Movie and Television Review and Classification Board upheld its decision to suspend the noontime show “It’s Showtime” for 12...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Pets
  • Tech
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Cravings
  • Environment & Sustainability
  • Agriculture
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Gallery
    • Photos
    • Videos
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App