Panel assesses inflation, bank crisis
Kasikorn Research Center (KResearch) expects the United States Federal Reserve (Fed) to increase interest rates by 0.25% on Wednesday to tame inflation as the banking crisis in the US and Europe has eased somewhat.
The Federal Open Market Committee is projected to hike the rate by 25 basis points to 4.75-5.00%, as US inflation remained elevated in February.
The central bank also wants to signal the liquidity crisis for mid-sized US banks should not cause widespread impacts to the overall economy, noted KResearch.
“If the Fed halts policy rate hikes, it could create more volatility in financial markets. This will increase the concern that the Fed sees this as a big problem,” said the research house. “Amid growing concerns about liquidity problems in the banking system, the Fed is likely to focus…
