Consumers’ income growth and spending levels have slowed in the early days of 2023. Inflation, meanwhile, maintains its downward trajectory. Personal income rose 0.3 percent in February, down from 0.6 percent in January. This was slightly higher than the market estimate of 0.2 percent. Personal spending edged up 0.2 percent, down from two percent in […]
Federal Reserve
Federal Reserve’s balance sheet eases as bank emergency lending slows
The Federal Reserve’s emergency lending to banks appears to have slowed. For the week ending March 30, the U.S. central bank’s balance sheet eased by nearly $30 billion to $8.706 trillion, down from $8.734 trillion. In the aftermath of the Silicon Valley Bank and Signature Bank failures, the Fed employed emergency lending tools, prompting the […]
U.S. small banks suffer record deposit drop after SVB, Signature failures: Fed data
Are Americans waving goodbye to small banks? In the aftermath of the Silicon Valley Bank and Signature Bank failures and the U.S. government signaling that it would only come to the rescue of the big banks and well-connected institutions, depositors are right to be concerned. According to new data from the Federal Reserve, bank customers […]
Federal Reserve added another $100 billion to its balance sheet last week amid banking crisis
The Federal Reserve added another $100 billion to its balance, raising the total to nearly $400 billion in two weeks. The U.S. central bank’s balance sheet now stands at $8.733 trillion. At the beginning of its tightening campaign, the balance sheet was $8.965 trillion. Here is the chart:
Watch: Post-FOMC policy meeting with Fed Chair Jerome Powell
First, here is the post-meeting press conference with Federal Reserve Chair Jerome Powell: Now, the Federal Reserve raised interest rates by 25 basis points, increasing the benchmark target rate to a range of 4.75% and 5.00%. The key Federal Open Market Committee (FOMC) statement that everyone was waiting for: “The U.S. banking system is sound […]