Federal Reserve

U.S. financial institutions borrowed less money from the Federal Reserve last week, early evidence that banking turmoil may be starting to dissipate.

Even though the Federal Reserve might have started bending the inflation curve, Mick Mulvaney and Anton Schutz warn the central bank is ignoring "the real problem out there."

As banks stabilize, investors and analysts warn that bond markets will become vulnerable to a reversal should the Fed resume its inflation-fighting efforts.

A key inflation measure came in softer than expected in February, although the price index remains about three times higher than the pre-pandemic average.

Boston Fed President Susan Collins said the banking system "remains strong" and anticipates at least one more interest-rate increase this year.

The Labor Department reported on Thursday that a growing number of workers are filing for unemployment benefits, with jobless claims hitting a three-week high.

Treasury Secretary Janet Yellen said that stricter regulations may need to be put into place after the collapse of Silicon Valley Bank earlier this month.

During the closures of SVB and Signature Bank, Americans withdrew almost $100 billion from their bank accounts, according to seasonally adjusted data from the Federal Reserve.

Pending home sales climbed 0.8% in February, rising for the third straight month even as higher mortgage rates weighed on consumer demand for new homes.

BlackRock's global fixed income CIO Rick Rieder said on "The Claman Countdown" that the Federal Reserve will continue to raise interest rates before pausing to see if inflation abates.

The Federal Reserve has made it clear that a banking sector crisis will not force its hand on interest rate cuts in 2023, according to BlackRock analysts.

The housing market is in the midst of a correction caused by high mortgage rates, with prices declining again in January as consumer demand evaporates.

Despite a recent decrease in mortgage rates, economic pressure could elevate rates for the near term, according to an analysis by Realtor.com. But homebuyers may find some solace in overall lower home prices, stronger negotiating power and smaller down payments, another report suggests.

The collapse of Silicon Valley Bank appears to have been a perfect storm from failures of management, hyped up social media, risky liabilities and the speed of digital banking.

Upheaval within the banking sector has raised the risk of a "credit crunch" in the U.S., which would make lending standards drastically more restrictive.

The International Monetary Fund has issued a warning that the risks to financial stability are rising.

Gas prices decreased this week to $3.49 per gallon, AAA reported. And prices could hold steady as the price of oil remains low, despite a rise in demand for gas.

The Financial Stability Oversight Council met on Friday morning amid continued fallout from a spate of bank failures and fears of a broader financial crisis.

The Federal Reserve's emergency bank lending ballooned again this week amid continued fallout from the collapse of Silicon Valley Bank and Signature Bank.

A recession may be in the cards for the U.S. economy, and the Fed could soon cut interest rates, according to Jerome Powell's preferred bond market indicator.