Wall Street analysts walked away from Nvidia's developer conference with more confidence in the computing firm's dominant leadership in artificial intelligence. "But because the Fed has essentially said, you know, we're going to backstop all depositors that I think that has allowed investors to feel more, more confident that this crisis probably has run its course," added Stovall. To be sure, Stovall said that "there could be a few more regional banks out there that proved to have problems." The investment strategist added that he believes much of the banking crisis is now contained. So he's trying to let the market have its cake and eat it too - fighting inflation but not being blind to the whole thing contagion issue," he continued. "We think going to say that he has to he has to continue to strangle inflation, but at the same time, continue to provide liquidity and backstop banks, should there be any challenges. But then we see them hitting the pause button," said Stovall. And as a result, we'll probably raise rates, at least one more time, if not, in both May and June. "We're still saying that the Fed regards inflation as their prime directive. Lea la cobertura del mercado de hoy en español aquí.ĬFRA Research's chief investment strategist Sam Stovall anticipates the Fed will announce a few more rate hikes this year, before pausing its aggressive monetary policy tightening measures. We know that that can have an effect on the macro economy." To be sure, he also said: "I think for now, though … we see the likelihood of credit tightening. Meanwhile, Powell noted that bank deposit flows had stabilized over the last week after the central bank and regulators moved to backstop depositors. The S&P Regional Bank ETF (KRE) ended Wednesday's trading session more than 5% lower. Regional bank shares declined on Wednesday following the rate hike announcement and Yellen's statement that the Treasury is not considering a broad increase in deposit insurance. Earlier this month, Silicon Valley Bank and Signature Bank collapsed, while UBS acquired rival Credit Suisse - a move forced by Swiss regulators to shore up the country's banking industry. The Fed's rate hike comes amid uncertainty over the health of the global banking sector. "Barring an increase in contagion risk within the banking sector, we expect that the Fed will be faced with a very similar policy decision in May, and they will be compelled to deliver another hike." "The Fed's actions today are consistent with our long-held view that the Fed will raise rates to 5.125% and pause for an extended period," Jefferies economist Thomas Simons said in a note. But, Powell said in the news conference that the inflation fight is far from over. On the bullish side, the latest Fed projections called for just one more hike this year. In a statement, the Fed's policymaking committee said it "will closely monitor incoming information and assess the implications for monetary policy." Additionally, the central bank removed the phrase "ongoing increases" from its statement. The Fed raised rates by 25 basis points, as was widely expected. And if it is, it could easily have a significant macroeconomic effect, and we would factor that into our policy decisions," he added. "We'll be looking to see how serious is this and does it look like it's going to be sustained. "Financial conditions seem to have tightened," Fed Chair Jerome Powell noted. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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