The Fed will be forced to surrender on rate hikes after SVB's failure, says top economist Mohamed El-Erian
SVB's dramatic implosion showed that the Fed's jumbo rate-hike campaign could destabilize even institutions that were once thought to be relatively stable.
Given that, investors are now anticipating the Fed to temper its hawkish monetary policy stance to prevent further damage to the financial system. On Monday, such expectations fueled the sharpest slide in the 2-year Treasury yield since the financial crisis of 2008. The yield on the 2-year Treasury note slid about 45 basis points to 4.214% at last check on Monday – its lowest level since February 3.
"This roller coaster yield curve is a reflection of economic, financial and policy volatility which, looking forward, will need time to settle down," El-Erian said in a later tweet.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
JPMorgan, PNC among suitors for SVB Financial in deal excluding SVB Bank - AxiosJPMorgan Chase & Co and PNC Financial Service Group Inc are among those in talks about acquiring SVB Financial Group in a deal that would exclude its commercial banking unit Silicon Valley Bank that is currently under U.S. control, Axios reported on Monday citing sources.
Weiterlesen »
Dollar slumps, rate hikes in question as Fed limits SVB fallout By Investing.com⚠️BREAKING: *U.S. DOLLAR SLUMPS, MARCH RATE HIKE IN QUESTION AS FED LIMITS SVB FALLOUT - $USD
Weiterlesen »
Treasury yields plunge as SVB fallout seen slowing Fed rate hikesThe U.S. 2-year bond yield has shed more than 80 basis points in three sessions as expectations for a 50 basis point rate increase by Fed in March evaporate.
Weiterlesen »
Fed to hold emergency meeting on Monday amid SVB's swift collapse By Investing.com*FED TO HOLD EMERGENCY MEETING ON MONDAY AMID SVB'S SWIFT COLLAPSE -
Weiterlesen »
Fed and FDIC discussing backstop to make SVB depositors whole and stem contagion fears: SourceFinancial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank.
Weiterlesen »