The Central Bank raised interest rates again this month for the 9th time following the high inflation experienced in the world right now. The move was made after the two regional banks (the Silicon Valley Bank and Signature Bank) collapsed. With their unanimous vote, the Federal Bank raised the rates on Wednesday by 25% to just under 5%! The interest rates seek to stabilize the United States economy.
Recent studies show that the Fed interest rates will rise by approximately a quarter percentage by the end of 2023. The Central Bank is concerned about the rising inflation rates, with TV subscriptions, airline tickets, and normal living costs rising daily.
Lately, the Central Bank is facing scrutiny while oversighting the overall failure of two regional banks. Be that as it may, the Central Bank must devise ways to determine how they can counter the collapsing of the two banks and skyrocketing interest rates. Currently, the other banks should be conservative when offering loans to account holders. Slow economic growth and Russia- Ukraine invasion have led to slow economic growth in the U.S and abroad.
The Feds, Treasury Department, and Federal Deposit Insurance Corp joined hands to help the global banking system to prevent another economic meltdown. Some of their interventions included offering loans on favorable terms and helping all affected banks get on their feet. For us, it is a waiting game.
