Economists warn that nearly 200 banks are at risk of runs, failure
Fears that another interest rate hike will hasten more bank failures will loom over the Federal Reserve’s meeting this week after a study found that nearly 200 banks are at risk of the same sort of collapse as the one at
The fear is that another rate hike from the
“The recent declines in bank asset values very significantly increased the fragility of the
The network’s study estimated that 186 banks in the
In developments Sunday, banking giant
And the
Chairman
That was before the collapses of
The banks’ troubles have been blamed in part on the Fed’s rapid series of rate hikes, which reduced the value of their long-term debt. The banks were unable to fulfill the run of withdrawal demands from depositors seeking higher yields elsewhere.
Bank stocks have taken significant hits. On
The company said it has about
Treasury Secretary
Despite widespread fears for the banking industry, the
The group, which provides policy advice to 37 democracies with market-based economies, said the Fed should raise its benchmark rate to a range of 5.25% to 5.5% from the current 4.5% to 4.75%.
The
One key measure of inflation in the
“The reckless tax-and-spend agenda that was forced through Congress” contributed to record high inflation that the Fed is combating through rising interest rates, said Sen.
Sen.
“I plan to hold the regulators accountable,” he said.
Sen.
“Strengthening accountability is an important deterrent to prevent mismanagement in the future,”
• This article is based in part on wire-service reports.
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