Economists warn that two more US banks are on the verge of collapse after the Federal Reserve lifted its key interest rates by 0.25% this week, prompting stock prices of American lenders to drop sharply after the hike.
As widely expected, on Wednesday the Federal Open Market Committee raised its key interest rates by 25 basis points to between 5% and 5.25%, up from near zero in March 2022. Also included with the move, its 10th hike in 14 months, was a hint that the Fed may pause rate increases for a period.
The rate increase prompted money to flow out of stock markets to safe-haven assets, including money market funds, while two more US banks could go bankrupt, analysts said.
“Fed chairman Jerome Powell sent a big signal, saying ‘we’re getting close or maybe even there’, meaning…
