Central bank members meet Wednesday.
The two-day policy meeting of the Federal Reserve will meet Tuesday and Wednesday. Among their major considerations are the strains that have come upon the banking industry by the failure of the Silicon Valley Bank and the weekend takeover of Credit Suisse by USB.
Also to be taken up on Wednesday is whether inflation is still increasing too rapidly and whether or not interest rates will be raised again. The current rate is 4.5 percent to 4.75 percent. Inflation, while slowing somewhat, remains at 5.4 percent. The Fed’s preferred measure is 2 percent.
Recent regional bank failures have caused the Fed to create an emergency liquidity backstop for U.S. banks. The U.S. banking situation remains in flux after the rescue of First Republic Bank, based in San Francisco, with the nation’s biggest banks stepping in to shore up Republic.
Meanwhile, some in Congress are suggesting legislation to increase the insured rate by the FDIC for bank deposits over the current $250,000. Representative Maxine Waters of California, who sits on the House Financial Services Committee, believes all bank deposits should be protected.
As the Lord Leads, Pray with Us…
- For Chairman Jerome Powell and members of the Federal Reserve as they meet to discuss the current state of inflation and interest rates.
- For wisdom for U.S. officials as they evaluate the deposit insurance provided to banks.
- For members of Congressional financial committees as they take up positions and possible legislation regarding banking.
Sources: New York Times, Bloomberg, Newsmax
