US Central Bank Federal Reserve May Consider Rate Hike Pause Amid Ongoing Banking Crisis

US Interest Rate Hike: The current banking crisis that started from America is now showing its effect all over the world. At the same time, this crisis in front of the American Central Bank has created difficulties on many fronts. On the one hand, the Federal Reserve (US Fed Reserve) has to make efforts so that the present crisis does not overwhelm the banks even further, while on the other hand, a situation is being created to compromise on the aggressive strategy to control inflation.

This is why it is necessary to increase the interest rates

The Federal Reserve has been focused on controlling inflation for more than a year. The Federal Reserve has reiterated on several occasions that its biggest concern at the moment is inflation. It is also natural for this to happen, because till a few months ago, America was struggling with the highest inflation of several decades. For this reason, the Federal Reserve was continuously increasing the interest rates and now its intention was to continue it, but now the sudden banking crisis has made its way difficult.

Experts are speculating

According to a Bloomberg report, many experts in banking and economy say that the Federal Reserve may stop the process of increasing interest rates in view of the current situation. On the other hand, many believe that the Central Bank can increase comparatively less.

Fed Reserve meeting this week

The Federal Reserve meeting is about to begin this week. This important meeting of two days will start on Thursday and its results will be revealed on the last business day of the week i.e. Friday. Before this meeting, it seemed that the Central Bank could increase the interest rates by 50 basis points i.e. 0.50 percent in this meeting due to better than expected economic figures.

rapidly changing picture

However, after March 10, till now the whole picture has changed. Silicon Valley Bank closed on March 10. With this, the era of unexpected banking crisis started. Although many analysts have been claiming since the sinking of Silicon Valley Bank that the situation is not like the banking crisis of 2008, but the developments happening after that are indicating something else. In America itself, after the Silicon Valley Bank, Signature Bank, First Republic Bank, Western Pacific Bank have become victims of the crisis. While looking outside America, Credit Suisse, one of Europe’s most prestigious banks, has also fallen victim to the current crisis.

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