As anticipated by investors, the Fed continues its fight against inflation raising rates 0.25%, not long after running up their balance sheet in an attempt to restore stability within the banking sector and shore up confidence amongst depositors. The Collapse of SVB, and now Credit Suisse have rattled markets showing us that cracks in regional banking may be enough to slow the economy further as financial conditions tighten. Yet, Powell affirmed markets that the Fed plans to maintain a foothold on bringing down inflation. Unfortunately for markets, the path to recovering has become more murky with all eyes now on the Fed, as investors watch how they balance between its inflation campaign and providing support to US regional banks. Though their actions have been more tempered compared to the ECB who raised the benchmark rate by 0.5%, with price stability on Christine Laggard’s main agenda.
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UK inflation remains resilient in February.
UK inflation remains resilient in February.
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US Jobs created in March slows but not enough.
US Jobs created in March slows but not enough.