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...Now, almost half of all seniors are at risk of a financial shock with less than six weeks of liquid savings....
...It also comes as global central banks, led by the US Federal Reserve, have signalled that interest rates are expected to remain higher for longer as they battle to bring down inflation, a shift that has...
...A top US bank regulator is proposing new limits on big bank mergers, in the wake of the failure of Silicon Valley Bank and two other banks last year, and the recent market turmoil around New York Community...
...The flipside to higher interest rates is people also want more for their savings....
...The Federal Reserve has signalled that US borrowing costs are likely to remain higher for longer, as it wrestles with persistent inflation across the world’s biggest economy....
...Lending by US banks dropped by $36bn in the first three months of the year compared to the end of 2023, the biggest quarterly drop in more than three years....
...Most bank mergers need approval from all three of the US federal bank regulators: the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency....
...Deposit costs at the largest US banks rose more than interest revenue last quarter for the first time since the Federal Reserve began raising rates two years ago, as savers demanded lenders share the benefits...
...Most of last week I was in Switzerland, at a Bank for International Settlements conference. (Unhedged is now just me, until I find a replacement for the irreplaceable Ethan.)...
...The European Central Bank is expected to start cutting interest rates in less than a month, while the Federal Reserve is on hold for some time....
...Jay Powell said the Federal Reserve’s job of bringing down inflation was “not yet done” and the US central bank needed “greater confidence” that price pressures were easing before cutting interest rates,...
...The savings rate of 3.6 per cent in the first quarter was again low, suggesting few worries among households regarding activity levels....
...This is what happened when the FDIC auctioned off First Republic last year, little more than a month after the collapse of Silicon Valley Bank....
...But banks are finally having to pass on higher savings rates to depositors, according to JPMorgan and Wells Fargo, which also reported earnings....
...It is the same reason why farmers often prefer to bank with their local community banks....
...US Federal Reserve chair Jay Powell has said it is likely to take “longer than expected” for inflation to return to the central bank’s 2 per cent target and justify cuts to interest rates....
...NYCB had been seen as one of the winners of the 2023 crisis that sank Signature, Silicon Valley Bank and First Republic....
...The Federal Open Market Committee admitted as much on Wednesday in Washington, noting it had made little headway in recent months towards hitting the central bank’s inflation goal....
...But first, you should come up with some principles to guide thinking. I offered four....
...US borrowing costs are at a 23-year high, while the PCE index has been above the central bank’s 2 per cent goal since March 2021....
...might start the rate-cutting cycle earlier than the US Federal Reserve....
...Investors now expect the BoE, which announces its latest rate decision on Thursday, to cut earlier and faster than the Federal Reserve....
...But the Fed was not the only central bank that markets deemed surprisingly dovish. Two days before the Fed, the Bank of Japan wrapped its first interest rate increase in 17 years in dovish packaging....
...The first point to make is that the increase in industry concentration over the past 20 years, as measured by assets, has been remarkable....
...After a stronger-than-expected CPI print on Wednesday, Bank of America and Deutsche Bank are both now predicting that the Federal Reserve won’t cut US rates until this December....
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