The credit crunch caused by the banking turmoil may help the Fed's inflation fight, but it will hurt the economy and earnings, eToro strategist says
A credit slowdown resulting from the recent banking turmoil will help the Federal Reserve in its fight against inflation, but it will also slow the economy and earnings, according to eToro's global market strategist Ben Laidler.
"Financial conditions are tightening. I think the banks are gonna be doing the Fed's work for it. We're not saying there's a banking crisis, but we have lived through a scare," Laidler"We've already got the lag, the Fed's 5% interest rates, and now on top of that, we've got banks which are going to be lending less, and that combination is going to slow the economy and slow earnings, which we really haven't seen yet," he added.
Banks are tightening lending standards amid fears of regulatory crackdowns following the recent lender collapses, and also as they see large outflows of deposits into other avenues such as, according to Laidler. Smaller banks have seen the worst of the deposit outflows — and he expects they will see the worst of regulatory crackdowns as well.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Contagion in banking sector isn't likely, but credit probably tightens: Howard MarksThe collapse of Silicon Valley Bank and Signature Bank isn't likely to cause widespread contagion in the banking sector, but it could leading to further...
Leer más »
Brace for more banking shocks, Fed is in a 'twilight zone': FidelityBrace for more banking shocks with the Fed in a 'twilight zone' where it can't tame inflation without threatening financial stability, Fidelity warns
Leer más »
I used my late sister's credit card to pay her son's bills, can I get in trouble?You should stop using the credit cards and call the credit card companies to tell them...
Leer más »
Blockchain Association files further FOIA requests over banking closuresThe Blockchain Association wants more information on the closure of the crypto-friendly Signature Bank by U.S. regulators last month.
Leer más »
Big UK firms shrug off banking turmoil and turn more hopeful - DeloitteFinance executives at top British firms have reported the sharpest rise in optimism since late 2020 and the recent upheaval in the global banking sector has not dented the mood, a quarterly survey by Deloitte showed on Monday.
Leer más »
Britain seeks to boost banking services from fintechsBritain's financial regulators said on Monday they would set up a new body over the next two years to encourage more competition in banking services through the use of third-party apps from fintech firms.
Leer más »