#central-bank

#central-bank

The Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years.But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive.

Market Updates by Eliman Dambell Bitcoin rebounded from Tuesday's losses, as all focus in the market turned to today's United States Federal Reserve rate decision.It is widely expected that the Fed will hike rates by 25 basis points in May's meeting.Ethereum also moved higher, nearing $1,900 in the process.

As East Asia begins its business day, bitcoin and ether continue to climb, buoyed by another chapter of banking unrest and cooler-than-expected jobs data.Bitcoin is opening at $28,644, while ether is up 2% to $1,869.While crypto traders continue to eye U.S. economic data, a new narrative is forming in Korea - and one usual metric has been thrown out of whack.

Getty Images Mortgage rates have room to fall in May as the end draws near for this cycle of Federal Reserve rate increases.It's quite possible that this year's mortgage rates already peaked in March.They could gradually drop as unemployment rises, companies become less generous with wage increases and inflation subsides.

The Federal Reserve is getting some unwanted help in its drive to slow the U.S. economy and defeat the worst bout of inflation in four decades: a cutback in bank lending.The upheaval in the financial system that's followed the collapse of two major U.S. banks is raising the likelihood that lending standards will become sharply more restrictive.

America is now two years into abnormally high inflation and while the nation appears to be past the worst phase of the biggest spike in price increases in half a century, the road back to normal is a long and uncertain one.The pop in prices over the 24 months that ended in March eroded wage gains, burdened consumers and spurred a Federal Reserve response that has the potential to cause a recession.

The Bank of Canada is ready to defend Canadian banks from a global financial meltdown if the current banking crisis in the U.S. and Europe spills into Canada, but the central bank does not think they will have to step in.Speaking on Wednesday at the National Bank Financial Services Conference, Bank of Canada deputy governor Toni Gravelle declared that the bank was "ready to act in the event of severe market-wide stress and provide liquidity support to the financial system."

Markets seesawed severely this week when two of the US economy's most prominent leaders gave seemingly contradictory statements on the health of the banking sector.Expect more turbulence ahead.Fresh off of the Federal Reserve's decision on Wednesday to hike interest rates by a quarter point, Fed Chairman Jerome Powell said in the central bank's post-meeting press conference that all depositors' savings are safe.

Banks are turning to the Federal Reserve's loan programs to access funding as turmoil sweeps the financial system in the wake several high-profile bank failures.The collapse of Silicon Valley Bank on March 10 followed by Signature Bank on March 12 prompted depositors to pull their money from some banks and sent the stock prices for financial firms on a roller-coaster ride.

Switzerland's banking crisis has been halted, the country's central bank said Thursday as it hiked interest rates for the fourth time in a bid to contain inflation.Together with the Swiss government and financial market regulator FINMA, the Swiss National Bank helped orchestrate the emergency takeover of Credit Suisse (CS) by UBS (UBS)on Sunday to prevent the collapse of the country's second-biggest bank.

According to regulations published by the country's treasury secretary, global crypto exchanges used by Kenya's estimated 4 million users will start paying a 1.5% tax on revenues earned.Tax-Avoiding Digital Asset Platforms The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents.

Bitcoin (BTC) has begun 2023 with a bang, marking a positive turnaround from a year-long swoon.The rebound has put bitcoin ahead of ether, the second-largest cryptocurrency by market value, which appears on track for a 50% quarterly gain.Gold has added over 7%, while Wall Street's tech-heavy index Nasdaq has rallied 15%.