Hundreds of U.S. banks at risk of collapse in high-interest rate environment
According to an analysis report by Klaros Group, hundreds of American banks are at risk of collapse following several notable bank failures in 2023 and the recent collapse of Republic First Bank in Philadelphia.
Citigroup now expects the Fed to cut interest rates in July
Citigroup now expects the Fed to cut interest rates in July, with a total of 100 basis points cut by 2024.
Biden: Rate cuts could be delayed by a month
US President Biden stated that he maintains the prediction of interest rate cuts, which may be delayed by one month and there will be interest rate cuts before the end of the year.
The probability of the Federal Reserve keeping interest rates unchanged in May is 97.4%.
Based on the "Fed Watch" of CME, the probability of the Fed keeping interest rates unchanged in May is 97.4%, and the probability of a cumulative 25 basis point rate cut is 2.6%. The probability of the Fed maintaining interest rates unchanged until June is 42.2%, the probability of a cumulative 25 basis point rate cut is 56.3%, and the probability of a cumulative 50 basis point rate cut is 1.5%.
The probability that the Fed will keep interest rates unchanged in March is 99%
The probability that the Federal Reserve will maintain interest rates in the range of 5.25% - 5.50% in March is 99.0%, and the probability of a 25 basis point rate cut is 1.0%. The probability of maintaining interest rates in May is 94.1%, and the cumulative probability of a 25 basis point rate cut is 5.9%.
Federal Reserve Monitoring Economic Data for Potential Interest Rate Cut; Berkshire Hathaway Struggles to Find Investment Opportunities in U.S. Market
The Federal Reserve is keeping a close eye on economic data to determine when an interest rate cut may be necessary. The stock market experienced gains last week, with the S&P 500 and Nasdaq Composite both up. Companies such as Dominos, Lowes, Macy's, Ebay, Salesforce, and Best Buy are still reporting earnings. The economic calendar is heating up with reports on various economic indicators coming out this week. Berkshire Hathaway reported strong earnings but is struggling to find investment opportunities in the overvalued U.S. market. Investors should be cautious and stick to their long-term objectives, despite the booming AI sector. The article provides an iframe script and a unique ID generator for tracking purposes, but also includes a disclaimer stating that the content is for educational purposes only and is not intended to be investment advice. It is provided by tastytrade, Inc.
CME data shows the probability of the Fed cutting interest rates in March has dropped to 2.5%
CME Fed Watch data shows that the probability of the Fed maintaining interest rates in the range of 5.25%-5.50% in March is 97.5%, and the probability of a 25 basis point rate cut is 2.5%. The probability of maintaining interest rates unchanged in May is 78.4%, the probability of a cumulative 25 basis point rate cut is 21.1%, and the probability of a cumulative 50 basis point rate cut is 0.5%.
Fed Governor: Cutting interest rates later this year may be appropriate
Federal Reserve Governor Jefferson stated that a rate cut later this year may be appropriate. <br>
Fed Kashkari: At present, it seems appropriate to cut interest rates 2-3 times this year
Fed's Kashkari said: "If the labor market remains strong, we can lower policy rates quite slowly. At present, it seems appropriate to cut interest rates 2-3 times this year."
Probability of Fed rate cut in March drops to 15%
CME FedWatch shows that there is an 85% probability that the Federal Reserve will maintain interest rates in the range of 5.25%-5.50% in March, and a 15% probability of a 25 basis point rate cut. The probability of maintaining interest rates unchanged until May is 37.7%, the cumulative probability of a 25 basis point rate cut is 54%, and the cumulative probability of a 50 basis point rate cut is 8.3%.
