Will banks failure leads Fed to back off its long camping of inflation fighting?

Not today or yesterday Fed Reserve system was created for financial system of United States. The system was created long time in 1913 if I'm right that is over 100 years now. Oh🤔 I was nobody then.lol

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Fed Reserve system was created for the purpose of regulating, stabilize the financial system in U.S and solve some challenges facing by citizen of the country. However, over some years now the financial system of U.S is in conflict, citizen living unfold under economy crisis and high standard of living. The inflation hit all the world badly since the outbreak of Covid in 2020 and yet no countries have balance up this cause since three years ago.

United States as world figure then introduced a rates hiking policy to fight inflation and help to slow down the economy crisis causing recession.

Fed has been focused inflation fighting for the past years and that is what we're expecting before the collapse of Silicon Valley Bank and Signature Bank that show up and stop the whole storys.

The recent turmoil in the banking system of United States had forces the Fed to choose between its long time goals of fighting inflation and backstop the failure banks contagion.

The collapse of those bank shifted the expectation while also caused lot of things that people react if Fed is going to paused its rate hiking to rescue banking system. Although many don't understand $300 billion rollout to stop more stress on the banking system is also in favour of fed long-term bond which has fallen in value and it included in part of plan of fighting inflation, and if action was not taken immediately after implosions of SVB the situation might getting worsen for banking system and financial system of US. In fact it will easily spread it to other European countries.

I read several comment of economists on Fed hikes. Some said it is the one that contribute to banks failure in U.S in sense that it affected banking loan section. This is true because amid of rate hiking, interest rate for banks loan have been increasing and this deprived many small banks to generate money through offering loans. Less people are now applying because of interest rate, more companies get it difficult to operate because they rate of loan acquire. So the failure of SVB and others showed those effect of high rates on banking system.

However, I don't know maybe we should keep expecting such policy that will hurt some financial part and claimed to help some part in price stability, job hunting and increase in demand and supply.

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