Billionaire investor Bill Gross says the Fed easing up in fighting inflation could fuel a rally in government bonds
the Fed's year of aggressive tightening
– because when borrowing costs rise, investors can get better and less risky returns by parking their cash in savings accounts. But Gross now expects the central bank to start easing up in its war on inflation, after the crash in bond prices stoked fears of a financial crisis by sparkingThe California lender's share price plunged 86% in two days after it disclosed it had lost $1.8 billion completing a $21 billion fire sale of its fixed-income portfolio on March 9. The news caused a bank run as customers rushed to pull out their largely uninsured deposits, forcing regulators to take control of the bank.
Fears that the chaos would develop into a full-blown crisis have dragged on other financial institutions like. They've also fueled the expectation that the Fed will back down from its aggressive tightening campaign to prop up the value of struggling banks' investments and maintain financial stability.
Nearly 50% of traders now expect the central bank to pause its rate-hiking campaign at its next meeting in May, according to
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Ed Sheeran Leads February Boxscore Report With $50 Million Gross.edsheeran leads Billboard's February Boxscore report with $50 million gross.
Baca lebih lajut »
Fed's Susan Collins signals additional rate hikes needed to fight inflationBoston Fed President Susan Collins said the banking system 'remains strong' and anticipates at least one more interest-rate increase this year.
Baca lebih lajut »
This is why SVB imploded, says top Fed official | CNN BusinessSilicon Valley Bank imploded due to mismanagement and a sudden panic among depositors, a top Federal Reserve official plans to tell lawmakers at a hearing on Tuesday.
Baca lebih lajut »
Many parties to blame for Silicon Valley Bank failure, Fed regulator tells CongressSilicon Valley Bank executives, supervisors at the Federal Reserve and the regulatory system all failed when considering the collapsed U.S. lender, the Fed's top bank oversight official told a Congressional hearing on Wednesday.
Baca lebih lajut »
GOP lawmakers accuse Fed of being lax before bank failureRepublican lawmakers accused top bank regulators of dawdling as Silicon Valley Bank hurtled toward the second-largest bank failure in U.S. history and questioned whether tougher regulations would have made a difference.
Baca lebih lajut »