Federal Reserve expected to raise interest rates 0.25%, investors debate next steps

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'When the Fed increases interest rates, it exposes any fissures in the financial markets or the economy....the recent tightening...contributed to the recent stress in the banking system,' said one economist. Fed is expected to raise interest rates 0.25%:

) early Monday morning, the latest domino to fall in the bank crisis that has seen four banks collapse sine early March.

"Right now you're not seeing any strong signs of those effects happening, but it's something I’m very much watching for," Williams said. "I don't think anything has been put to bed because banks are still impaired by losses on long-term securities," said Tilley. "Those unrealized losses are still there and they will affect banks' decisions about lending, and they have to be very cautious.

Source: Financial Digest (financialdigest.net)

 

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