Fed’s Powell faces political, policy storm over SVB oversight FMTNews FMTBusiness
The SVB’s collapse is Jerome Powell’s second institutional crisis during his five-year tenure as the Federal Reserve chairman.
Two of the Fed’s 12 regional bank presidents resigned as a result of that scandal and Powell launched a fast overhaul of the central bank’s ethics rules as criticism mounted. As policymakers kicked off their latest Federal Open Market Committee meeting, US Senator Rick Scott, a Republican and possible 2024 presidential candidate, demanded in a letter to Powell that the Fed chief address the “failures and malfeasance” behind the collapse of SVB and another US lender, Signature Bank, and “name the individual being fired”.
Still, turbulence in financial markets and the banking system is likely to feature prominently in Powell’s post-meeting news conference, which is scheduled to begin at 2.30pm EDT . The US central bank will release its policy statement and new economic projections from Fed officials at 2pm EDT.
Less clear, and arguably more important, is how a new policy statement assesses the risks to the economy posed by the recent trouble in banking markets, how it characterises the likely need for further rate increases, and how high officials think the target interest rate will rise by the end of this year.
“Economic data points toward one outcome while conditions in financial markets favour the opposite … communication will be a challenge,” as the Fed tries to explain what seems a no-win policy choice, said Ryan Sweet, chief US economist at Oxford Economics.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Khazanah tiada pendedahan langsung dengan SVBKhazanah tidak mempunyai pendedahan secara langsung dari segi pegangan saham, pegangan bon, tiada deposit dan juga pinjaman.
Read more »
Collapse of SVB in US unlikely to affect local banks, says Finance MinistryKUALA LUMPUR: The collapse of Silicon Valley Bank (SVB) in the United States is unlikely to have a contagion effect on the banking sector here said Datuk Seri Ahmad Maslan.
Read more »
Silicon Valley Bank's former owner, FDIC bracing for fight over US$2bNEW YORK, March 22 ― SVB Financial Group and the federal regulator that closed its Silicon Valley Bank unit indicated at a bankruptcy court hearing yesterday that a fight is...
Read more »
Thai PM dissolves parliament, calls electionThe election is the second since the 2014 coup and the first since the country was rocked by massive youth-led pro-democracy protests in Bangkok in 2020. theSun theSundaily election democracy politics Thailand
Read more »
Hannah gives statement to cops over ‘Jom Ziarah’ programme, calls for ‘crazy’ allegations to stopKUALA LUMPUR, March 20 — Facing a police investigation over the now cancelled “Jom Ziarah Gereja” programme, Youth and Sports Minister Hannah Yeoh has called for a stop to...
Read more »
UN expert calls for coordinated action against Myanmar juntaUN expert calls for coordinated action against Myanmar junta FMTNews FMTWorld
Read more »