Federal Reserve

  • The Impact of Interest Rate Increase on Financial Stability

    According to reports, Nick Timiraos, the Federal Reserve’s mouthpiece, said that there was a saying that the Federal Reserve would raise interest rates until there was a problem. In the past year, a big surprise is that the interest rate increase has not caused any destructive impact, but this is no longer the case. After the collapse of Silicon Valley Bank (SVB) and Signature Bank, regional banking stocks sold sharply on Monday, which may push the Federal Reserve into a situation it has been hoping to avoid in the past year: to address the impact on financial stability while fighting inflation. This situation may force Fed Chairman Powell and his colleagues to choose the issues that the Fed needs to focus on. Nick Timiraos: The SVB incident may force Powell to choose the issues that the Federal Reserve needs to focus on Analysis based on this information:The Federal Reserve’s mouthpiece, Nick Timiraos, recently stated that the Fed would raise interest…

    03/14/2023
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  • BlackRock: Federal Reserve Must Continue to Raise Interest Rates Despite Banking Industry Pressure

    It is reported that the investment research institute of BlackRock, the world’s largest asset management company, said that although the pressure of the banking industry is weakening investor confidence and tightening the financial environment, the Federal Reserve will still need to continue to raise interest rates to cope with inflation. The agency said that the current development will not cause the Federal Reserve to suspend interest rate increase. The current environment is different from that in 2008, when all monetary policy levers were used to support the economy. BlackRock: Although the banking industry is under pressure, it is expected that the Federal Reserve will continue to tighten monetary policy Analysis based on this information:In a report released recently, the investment research institute of BlackRock, the world’s largest asset management company, stated that despite the pressure on investor confidence and the tightening of the financial environment plaguing the banking industry, the Federal Reserve must continue to raise interest rates to combat…

    03/14/2023
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  • US Dollar Anchor Price Rebounds After Federal Reserve’s Emergency Financing Plan

    It is reported that in the early morning of March 13, Beijing time, after the Federal Reserve announced the new emergency bank regular financing plan and supported the Silicon Valley bank depositors to use funds on Monday, local time, the US dollar anchor price rebounded, and the US dollar anchor has been basically restored. According to the data of coingecko, the current trading price of the US dollar is US $0.991933, up 2.7% in the past 24 hours, and its market value has returned to above US $40 billion, At the time of writing, this article reached US $40427940918. (cryptoglobe) The market value of USDC returned to above $40 billion Analysis based on this information:This message highlights the impact of the Federal Reserve’s new emergency bank regular financing plan on the US dollar anchor price. According to the report, the US dollar anchor price rebounded after the announcement and has been restored to its original position, which is noteworthy for…

    03/13/2023
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  • The Federal Reserve extends Emergency Loan to Bank of Silicon Valley in USDC

    21:00-7:00 Key words: Federal Reserve, Emergency Loan, USDC, Bank of Silicon Valley Overview of important developments overnight on March 13 Analysis based on this information:The Federal Reserve announced on Tuesday that it had extended an emergency loan to the Bank of Silicon Valley in USDC. This announcement is significant as it marks the first time that the Federal Reserve has extended a loan denominated in a digital currency. The Bank of Silicon Valley, like many other banks, has been struggling to keep up with the economic fallout from the ongoing COVID-19 pandemic. The emergency loan is a crucial lifeline that will allow the bank to continue operating and providing essential services to its customers. The use of digital currency in this loan is particularly noteworthy, as it highlights the growing acceptance and legitimacy of digital currencies in the financial sector. The USDC digital currency is a stablecoin, which means its value is pegged to the US dollar. This makes it…

    03/13/2023
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  • Federal Reserve Launches Bank Term Financing Plan to Provide Additional Liquidity

    It is reported that the Federal Reserve said that the new financing plan will be provided through the creation of a new Bank Term Financing Plan (BTFP), which will provide banks, savings associations, credit cooperatives and other qualified depository institutions with loans of up to one year, with US treasury bond bonds, institutional debt and mortgage-backed securities and other qualified assets as collateral. These assets will be valued at face value. BTFP will become an additional source of liquidity for high-quality securities, eliminating the need for institutions to sell these securities quickly in times of pressure. Federal Reserve: provide loans to banks, savings associations, credit cooperatives and other qualified depository institutions for up to one year Analysis based on this information:The Federal Reserve has announced the launch of a new financing plan called the Bank Term Financing Plan (BTFP) that aims to provide additional liquidity to high-quality securities. The plan will benefit banks, savings associations, credit cooperatives, and other qualified…

    03/13/2023
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  • Bank of Silicon Valley Event Affects Federal Reserve’s Interest Rates Expectations

    It is reported that the Bank of Silicon Valley event weakened the expectations of the Federal Reserve to raise interest rates, and the December contract of the United States federal funds futures jumped 20 basis points to 95.26. The US dollar index fell 30 points in the short term to 104.03, and the decline of the US dollar against the yen USD/JPY widened to 1%. Spot gold continued to rise, hitting $1890/ounce upwards, rising 1.25% in the day. Nasdaq futures rose to 1%. BTC once exceeded US $22000. The Bank Event in Silicon Valley Weakens the Fed’s Interest Rate Increase Expectation Analysis based on this information:The recent Bank of Silicon Valley event has generated significant impact on the financial markets, especially in terms of the expectations of the Federal Reserve to increase interest rates. The December contract of the United States federal funds futures has shot up by 20 basis points to 95.26, signaling a decline in the hopes of…

    03/13/2023
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  • Federal Reserve ensures the stability of the U.S. banking system

    According to reports, the Federal Reserve said that the Treasury would provide $25 billion in emergency loan support, and the U.S. banking system remained resilient and stable. In order to provide liquidity to U.S. depository institutions, each Federal Reserve Bank will provide advance payments to eligible withdrawals, certain types of securities will be used as collateral, and the Federal Reserve will use various tools to support households and businesses. Federal Reserve: The Ministry of Finance will provide $25 billion in emergency loan support, and Signature Bank has closed Analysis based on this information:The Federal Reserve has given its assurance that the U.S. banking system remains stable and resilient, despite the current economic uncertainties brought about by the ongoing pandemic crisis. It has announced that the Treasury would provide $25 billion in emergency loan support to help stabilize the economy. The Federal Reserve has also taken various measures to provide liquidity to U.S. depository institutions by offering advance payments to eligible…

    03/13/2023
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  • Federal Reserve Announces Emergency Loan Program for SVB Silicon Valley Bank Depositors

    It is reported that the Federal Reserve announced a new emergency bank term financing plan, and the depositors of SVB Silicon Valley Bank will be able to use all funds on Monday. The Federal Reserve said it was prepared to deal with any possible liquidity pressure. The new plan will provide emergency loans for up to one year. Taxpayers will not bear any losses related to the decisions of the Bank of Silicon Valley. Federal Reserve emergency plan: depositors can withdraw all cash in Silicon Valley banks from March 13 Analysis based on this information:The recent announcement from the Federal Reserve regarding a new emergency bank term financing plan has caught the attention of many individuals in the industry. According to the report, the depositors of SVB Silicon Valley Bank will have access to all funds on Monday. This decision was taken by the Federal Reserve as a measure to deal with any possible liquidity pressure that might arise. However,…

    03/13/2023
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  • Federal Reserve Expected to Take No Further Action in Interest Rates

    It is reported that the Federal Reserve’s interest rate swap currently shows that the most likely scenario is that the Federal Reserve will no longer raise interest rates. The Fed’s interest rate swap currently shows that the most likely scenario is that the Fed will no longer raise interest rates Analysis based on this information:The Federal Reserve’s interest rate swap is used as an indication of the market’s expectations on the Federal Reserve’s plans for monetary policy. It has been reported that the current readings of the interest rate swap indicate that the most probable scenario is that the Federal Reserve will not raise interest rates any further. This message has significant implications on the market and the economy. The Federal Reserve’s decision on interest rates is among the most closely monitored events by investors and financial experts worldwide. The rates’ rise or fall significantly impacts spending and investment in industries such as housing, cars, and other financial investments. A…

    03/13/2023
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  • The Federal Reserve is Expected to Cut Interest Rates

    It is reported that the Federal Reserve’s interest rate swap is expected to cut interest rates by 50 basis points before the end of the year. The Federal Reserve’s interest rate swap is expected to cut interest rates by 50 basis points by the end of the year Analysis based on this information:The Federal Reserve is expected to cut interest rates by 50 basis points before the end of the year, according to reports. The Federal Reserve uses an interest rate swap to achieve this goal. An interest rate swap is an agreement between two parties to exchange one set of cash flows for another. In the case of the Federal Reserve, it would be exchanging its cash flow of paying interest on its securities for a cash flow of receiving interest on a different set of securities. The Federal Reserve uses this tool to influence interest rates in the market. When the Federal Reserve wants to lower short-term interest…

    03/13/2023
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  • Traders’ Belief on Federal Reserve’s Interest Rate Decision

    It is reported that according to CME’s “Federal Reserve observation”, traders now believe that the probability of the Federal Reserve to maintain interest rates unchanged in March is 54%, and the probability of raising interest rates by 25 basis points is 46%. Traders now believe that the possibility of the Federal Reserve keeping interest rates unchanged in March is 54% Analysis based on this information:The Federal Reserve is one of the most critical institutions in the financial system of the United States. Decisions taken by the Federal Reserve often shape the financial environment in the country and, consequently, impact the global economy. One of the most looked at decisions is the decision on interest rates. Recently, CME’s “Federal Reserve observation” reported that traders now believe that the probability of the Federal Reserve maintaining interest rates unchanged in March is 54%, while the probability of raising interest rates by 25 basis points is 46%. The belief of traders on the Federal…

    03/13/2023
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  • US White House prepares for Interest Rate Increase in March as DXY continues to rise

    7:00-12:00 Key words: US White House, interest rate increase in March, DXY, Federal Reserve, DeFi agreement Summary of important developments at noon on March 13 Analysis based on this information:On March 16th, the US Federal Reserve will meet and likely announce an increase in interest rates. This message seems to indicate that the White House is preparing for this inevitable decision. Interest rates have remained near zero for some time now, but with the economy recovering from the COVID-19 pandemic, it is likely that they will raise rates to prevent rapid inflation. The DXY, or US Dollar Index, has been steadily increasing in value over the past few months. A higher interest rate would make US dollar investments more attractive, leading to more demand for the currency and driving up its value. This has important implications for the global economy, as a stronger US dollar puts downward pressure on other currencies, particularly those of emerging markets. The reference to a…

    03/13/2023
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  • Founder of Pershing Plaza Capital said the Federal Reserve Intervention Might Not be Enough to Prevent Bank Failures

    According to reports, Akman, founder of Pershing Plaza Capital, said that although the Federal Reserve intervened, more banks might fail. Founder of Pershing Plaza Capital: Despite the intervention of the Federal Reserve, more banks may fail Analysis based on this information:Akman, the founder of Pershing Plaza Capital, recently made a statement regarding the intervention by Federal Reserve in the banking system. According to reports, Akman noted that even though the Federal Reserve had taken measures to prop up the banking system, there might still be a risk of more bank failures. This observation comes amidst an ongoing economic downturn caused by the COVID-19 pandemic, which continues to wreak havoc on the global financial system. Akman’s statement reflects the fear that despite the Federal Reserve’s best efforts to rescue the banking system, it may not be sufficient to prevent more banks from collapsing. This sentiment is supported by the recent announcement of the largest U.S. banks reporting significantly higher reserves for…

    03/13/2023
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  • Goldman Sachs predicts a halt in Fed’s interest rate hike

    According to reports, Goldman Sachs said that in view of the recent pressure of the banking system, it no longer expected the Federal Reserve to raise interest rates at the meeting on March 22. The expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July remains unchanged, and the terminal interest rate is now expected to be 5.25-5.5%. (Golden Ten) Goldman Sachs: maintain the expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July Analysis based on this information:Goldman Sachs has made an announcement regarding the interest rate hikes by the Federal Reserve. According to reports, the investment bank has stated that it no longer expects the central bank to raise interest rates in the meeting scheduled for March 22. This update comes in the backdrop of the recent market volatility and the pressure on the banking system. The Federal Reserve, under the leadership…

    03/13/2023
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  • Powell’s Keynote Speech Focuses on Ending “Too Big to Fail”

    It is reported that the Chairman of the Federal Reserve, Powell, delivered an Ending “Too Big to Fail” keynote speech at the 2013 meeting of the International Bankers Association in Washington. In his first speech as a member of the Federal Reserve, he discussed how to deal with bank runs. In January 1991, there was the third largest bank failure in the history of the United States. The financial system and the overall economy were under great pressure. 45 banks were closed and 300000 accounts were affected. At that time, the problem was that either the Federal Deposit Insurance Corporation of the United States protected all bank depositors without considering the deposit insurance limit, or it might face a more severe panic run. At last, the Federal Reserve decided to ignore the maximum insurance amount and protect the full amount in each account. Powell proposed to protect the full amount of each account in the collapse of the third largest…

    03/12/2023
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  • Mark Cuban highlights FDIC’s insurance compensation is insufficient

    According to reports, Mark Cuban, the boss of the NBA Dallas Lonely Rangers and the crypto investor, sent a paper on social media to analyze the Silicon Valley Bank incident. He said that the US FDIC’s insurance deposit compensation of US $250000 was too low, and the regulatory agency had never supervised and warned that the bankruptcy of the Silicon Valley Bank would cause many companies to be unable to pay wages. Mark Cuban suggested that the Federal Reserve should immediately purchase all the securities/liabilities owned by banks at a price close to the face value, and these assets should be sufficient to pay most of the deposits. If the Federal Reserve does not do so, people’s trust in the banking system will become a problem. Many banks have more than 50% of the uninsured deposits. This is not a bailout. The Federal Reserve is actually providing cash to end the run. In return, it will obtain long-term assets that…

    03/12/2023
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  • Potential Impact of Federal Reserve’s Decisions on Silicon Valley Banks on Regional Banks in the US

    It is reported that Bob Elliot, a senior executive of Qianqiao Water Fund and CEO of Unlimited, an investment company, said in a social media message that the decisions of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) on the future of Silicon Valley banks may affect regional banks in the United States and cause them to face trillions of dollars of run risk. Bob Elliot disclosed data that nearly one third of the deposits in the United States are deposited in small banks, of which 50% are uninsured, and the proportion of uninsured deposits in credit cooperatives is even higher. According to the data of the Federal Reserve, as of February 2023, small banks in the United States have $6.8 trillion in assets and $680 billion in equity. The collapse of Silicon Valley banks will bring “the risk of running thousands of small banks”. (Cointelegraph) Qianqiao Water Fund executives: regional banks in the United States may face…

    Daily Digest 03/12/2023
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  • US Treasury Department to discuss the situation of Silicon Valley Bank with lawmakers

    It is reported that the US Treasury Department will introduce the situation of Silicon Valley Bank to California legislators at 1 p.m. on Sunday. The briefing of the Federal Deposit Insurance Corporation of the United States and the Federal Reserve on the situation of the Bank of Silicon Valley to California lawmakers will begin at 11 o’clock tonight (11 a.m. Beijing time). (AXIOS) The US Treasury Department will introduce the situation of Silicon Valley Bank to California lawmakers at 1:00 p.m. on Sunday Analysis based on this information:The US Treasury Department will be informing California legislators about the current status of the Silicon Valley Bank. The briefing will commence at 1 p.m. on Sunday (11 a.m. Beijing time). Along with the US Treasury Department, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve will provide a rundown of the situation of the Bank of Silicon Valley to California lawmakers starting at 11 o’clock tonight (11 a.m. Beijing time). There…

    03/12/2023
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  • Federal Reserve’s Possible Fund and the Imminent Money Printing Machine

    On March 12, Arthur Hayes, founder of BitMEX, commented on the fact that the Federal Reserve was considering setting up a fund to guarantee deposits in the event of more bank failures, saying that it was getting closer to the start of the money printing machine. Remember that they first tried the Troubled Asset Relief Program in 2008? The market continues to fall and financial institutions continue to go bankrupt. Then they finally turned on the money printing machine. I guess it may follow a similar trajectory this time. Let’s see how big the rocket launcher is. Arthur Hayes, founder of BitMEX: More banks will fail or the Federal Reserve will restart the banknote printing machine Analysis based on this information:Arthur Hayes, founder of BitMEX, expressed his opinion on the possibility of the Federal Reserve setting up a fund to guarantee deposits following bank failures. According to Hayes, this kind of measure brings the United States closer to the start…

    03/12/2023
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  • FDIC and Federal Reserve May Create Fund to Guarantee Bank Deposits

    According to reports, Watcher.guru revealed on social media that the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are considering settin

    03/12/2023
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  • Novogratz Shocked by Federal Reserve’s Decision

    It is reported that Novogratz, founder of Galaxy Digital, a cryptocurrency investment company, was shocked that the Federal Reserve would cause depositors to su

    03/11/2023
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  • Federal Reserve Board to meet urgently over interest rate determination

    It is reported that the Federal Reserve will urgently convene a private meeting of the Board of Governors of the Federal Reserve System at 11:30 a.m. local time

    03/11/2023
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  • U.S. Congress Discusses Failed Banks in Silicon Valley

    It is reported that the members of the United States Congress met with the Federal Reserve and the Federal Deposit Insurance Corporation to discuss the failure

    03/11/2023
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  • Federal Reserve Plans to Lower Interest Rates

    It is reported that the Federal Reserve will cut interest rates by 25 basis points before the end of the year.
    The Federal Reserve will cut interest rates by 25

    03/10/2023
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  • Federal Reserve’s Interest Rate Hike Probabilities

    According to CME\’s \”Federal Reserve Observation\”, the probability of the Federal Reserve raising interest rates by 25 basis points to 4.75% – 5.00% in March is

    03/10/2023
    69
  • Federal Reserve Swap and Interest Rates

    It is reported that the Federal Reserve swap shows that the probability of raising interest rates by 50 basis points in March will fall below 50%.
    Federal Reser

    03/10/2023
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