Despite the string of bank failures in the U.S, the US central bank has raised interest rates again, despite fears that the move could add to financial turmoil.
The Federal Reserve increased its key rate by 0.25 percentage points, calling the banking system "sound and resilient".
Fears of Potential Iranian Attack , Drive US Stocks Down , Nearly 500 Points.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
By mid-afternoon, the Dow had fallen
1.4%, the S&P 500 went down 1.6%,
and the Nasdaq dropped 1.8%.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The warning comes after Iran
accused Israel of a deadly airstrike
on a consulate in Damascus, Syria. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
Brent crude futures jumped up to $90.42
a barrel, and West Texas Intermediate crude
futures increased to $86.65 a barrel.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
CNN reports that Americans' opinions of
the economy have dipped in the past few
months amid persistently high inflation.
The geopolitical fears come as investors are already
contending with concerns that the Federal Reserve could
wait to bring interest rates down from a 23-year high.
Officials at the Fed have signaled that further rate
hikes could still be on the way if the central
bank's efforts to fight inflation stall.
Credit: Wibbitz Top Stories Duration: 01:31Published
Federal Reserve Posts Massive, $114 Billion , Loss in 2023.
On March 26, the Federal Reserve
announced a record-breaking net
negative income of $114.3 billion in 2023.
Reuters reports that the loss follows
$58.8 billion in net income in 2022. .
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
As a result of low rates and large
levels of bond holdings, the Fed has
earned significant profits in recent years.
Last year, the Fed's audited interest expenses for
banks' reserve balances reached $176.8 billion,
an increase of over $116 billion from 2022.
In 2023, the Fed's interest payouts from
its reverse repo facility were $104.33 billion,
increased from $41.9 billion the year before.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
At the close of 2023, the deferred
asset stood at $133.3 billion.
As of March 20 of this year, that number
had risen to $157.8 billion with no
indication of how much larger it could get.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset
Credit: Wibbitz Top Stories Duration: 01:30Published
In this Biz Pulse episode, we delve into market updates and the US Federal Reserve's announcement. Indian ADRs witness a decline, while IT stocks garner attention. Equity markets are on an upswing, while gold prices surge. Stay tuned for insights into these trends shaping the financial landscape.
#ADRStocks #ITMarket #StockMarket #Sensex #Nifty #IndianStocks #USStocks #USStockexchange #Businessnews #Worldnews #Oneindia #Oneindianews
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Experts Say Fed's , Rate Hikes Could Impact , Housing Market for Decades.
Yahoo Finance reports that the housing market
has been showing signs of bouncing back as
this year's spring home-buying season begins.
For the second week in a row, mortgage rates
fell, reaching the lowest level in over a month. .
According to Freddie Mac, the average rate
on a 30-year fixed mortgage dropped to
6.74% from 6.88% the week before.
At the same time, supply is also
starting to rebound, with new listings
hitting a 17-month high in February. .
Despite the improvement, experts warn
that the Fed's aggressive rate-hiking campaign could
have long-lasting side effects on the housing market.
Despite the improvement, experts warn
that the Fed's aggressive rate-hiking campaign could
have long-lasting side effects on the housing market.
According to economist Gary Shilling, the Fed's
campaign has created a "perfect storm,"
with higher rates causing would-be
home sellers to put their plans on hold. .
It won't continue
indefinitely, but it certainly
is disruptive right now, Gary Shilling, Economist, via Yahoo Finance.
Redfin CEO Glenn Kelman shared similar views on the future of the housing market, warning it could take decades to move beyond the impact of the Fed's efforts.
Redfin CEO Glenn Kelman shared similar views on the future of the housing market, warning it could take decades to move beyond the impact of the Fed's efforts.
There's going to be low
supply for a long time to
come. What the Fed did…
will have a 30-year tail on it, Glenn Kelman, Redfin CEO, via Yahoo Finance.
Yahoo Finance reports that mortgage rates may be
unlikely to fall much further in the near term, meaning
that a more substantial rebound may still be far off.
Credit: Wibbitz Top Stories Duration: 01:30Published
Data Shows , US Wages Falling , at a 'Striking' Pace.
Fox News reports that wage growth
in the United States has slowed
significantly over the past year. .
According to new data from Indeed,
wage growth is beginning
to near pre-pandemic levels. .
Indeed's wage tracker showed that salaries have had
a marked drop since January 2022, suggesting that
employers are seeing less competition for new hires.
The pace of deceleration
is striking. Posted wage growth
has fallen by almost 3 percentage
points over the past year, Nick Bunker, Indeed labor economist, via Fox News.
Fox News reports that the most pronounced
deceleration was found in low-wage sectors. .
Given the huge run-up in posted
wages for those sectors, wage growth
is still above its pre-pandemic pace.
How long this will last is uncertain, Nick Bunker, Indeed labor economist, via Fox News.
After remaining historically tight throughout the last
year, the labor market is expected to continue slowing
in the coming months amid elevated interest rates.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
Despite this, job growth has
remained resilient, with employers
adding 275,000 jobs in February. .
At the same time, Labor Department
data shows that the unemployment
rate for the month also rose to 3.9%.
Credit: Wibbitz Top Stories Duration: 01:31Published
In a recent development, US official Mathew Miller highlights India's significance as the world's largest democracy and a key strategic partner. Stay updated on the latest diplomatic relations between the US and India. Subscribe now for more updates and analysis.
#USNews #USIndiaPartnership #JoeBiden #NarendraModi #BidenModi #BidenAdministration #MathewMiller #IndiaUSRelations #IndiaUSTensions #Oneindia
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In a candid interview, Kirron Kher sheds light on her absence from the Lok Sabha 2024 elections and the BJP's decision to replace her with Sanjay Tandon in the Chandigarh constituency. Discover the reasons behind this surprising development.
#KirronKher #KirronKherChandigarh #KirronKherwithAnupamKher #KirronKherBJP #ChandigarhConstituency #LokSabhaElections2024 #2024LokSabhaElections #Oneindia
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Iran's first direct attack on Israel has triggered chaos in the skies, forcing airlines to reroute flights and suspend services. Learn how the conflict is impacting air travel in one of the busiest regions of the world. From lengthy detours to service suspensions, discover the challenges airlines face amidst rising geopolitical tensions. Stay informed with the latest updates on this developing situation.
#AviationIndustry #AirlineReroute #IranIsrael #IranIsraelConflict #IranIsraelTensions #israelirantensions #IranIsraelWar #MiddleEastFlights #FlightsRerouteIranIsrael #Oneindia
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Iran assures Indian officials access to 17 crew members of an Israel-linked ship seized by Iran after S. Jaishankar's call to Iranian counterpart Amir Abdollahian. Amid rising tensions between Israel and Iran, Jaishankar advocates for de-escalation and diplomacy. India urges immediate de-escalation, emphasizing restraint and diplomatic solutions. The move follows Iran's retaliatory attacks on Israel and India's efforts to safeguard its citizens in the region.
#IranAttacksIsrael #Iran #Israel #IndiaIsrael #IndianCrew #AmirAbdollahian #IsraelIran #Crewship #Indiancrewiran #Worldnews #Oneindia #Oneindianews
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Iran claims it provided advance warning before launching a retaliatory strike on Israel, citing an attack on its embassy in Syria. However, US officials refute this, sparking a debate over transparency and escalation in the Middle East. Dive into the conflicting narratives and uncover the truth behind the escalating tensions.
#Iran #IranAttack #IranUS #IsraelIran #IsraelIranWar #IsraelIranTensions #IsraelIranAttack #JoeBiden #BenjaminNetanyahu #AliKhamenei #IsraelIranConflict #Oneindia
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Former President Donald Trump says he would not have bailed out Silicon Valley Bank, but instead would have lowered interest rates. Trump says the recent banking crisis happened because Federal Reserve..
Rahul Gandhi To Vacate MP Bungalow, Letter Mentions "Happy Memories"; Gangster Atiq Ahmed, Brought To UP From Gujarat; Interest rate on employees' provident fund fixed at 8.15 pc for 2022-23; Nepal put..
Bankers and regulators are not ready the financial environment in this decade. For forty years, interest rates had been falling, making banking easy. But tougher times are ahead. Legendary investor..
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