The U.S. banking sector is in crisis again, and the Fed is insisting on not cutting interest rates

Mondo Finance Updated on 2024-02-23

The U.S. banking sector is in crisis again, and the Fed is insisting on not cutting interest rates

The U.S. financial industry has once again set off a financial storm.

The US banks have another big ** in 2024, and the US central bank insists on not lowering interest rates, which is causing attention. This time, we may be able to take a fresh look at the reality of the event and the unique philosophy it contains. This friend of Wall Street, who knows the economy well, told us that Americans have different views on finances. If you still have some property in a U.S. bank, you have to be vigilant about the current situation, because the U.S. financial system has once again erupted in a storm. In the first half of 2022, Silicon Valley Bank and Signature Bank collapsed one after another, and now New York's social banks have been pushed to the forefront again, **50%, and people are flocking to the banks, what a terrible thing. Founded in 1859, New York's Community Bank has been a first-class social bank for nearly 120 years, but it bought the collapsed Signal Bank for $38 billion last year and now faces the same problem. To Wall Street's surprise, Moody's downgraded its sovereign hierarchy to "junk." The banking problems in the United States have spread and spread to banks elsewhere, and depositors in the United States are facing a crisis worse than ever. What triggered this crisis? The value of commercial real estate in the United States has been squeezed dry by 11 percentage points since 2022, and there is no way back for the banking industry. Yellen, the U.S.**, warned about corporate asset losses, saying that regulators are sparing no effort to maintain the stability of the system. However, Federal Reserve President Powell Powell appeared calm, insisting that a crisis in the banking sector was looming. Powell's stance may have come from a special fiscal policy of the US Federal Reserve (Fed), the Bank's Cyclical Funding Program (BTFP), which has given the banking sector a glimmer of hope. How many dangers are U.S. banks currently facing? According to the FDIC, the total book losses of major US banks reached a staggering 620 billion. Commercial banks in the United States have 4 trillion yuan of ** bonds and organizational bonds, of which credit for commercial real estate alone is as high as 29 trillion. If there is a large-scale explosion in the banking sector, the United States will face an unprecedented test. Why has the U.S. fiscal system repeatedly been hit by economic crises and has not taken action? Why does the Federal Reserve continue to lower interest rates and bankrupt small businesses and small businesses in the United States? Could it be that there is something hidden in this? A friend on Wall Street said another possibility: the economic crisis is caused by the collapse of the economy, and the United States has raised interest rates to clean up the "bad banks" and "bad assets", which is just a kind of self-cleaning of the industry, not a real economic crisis. But what would the financial crisis look like if there was a widespread flash of lightning in the US banking system? And in 2024, it could be a disaster for the U.S. financial industry.

U.S. financial markets are in turmoil again.

Once again, there was a problem with banks in the United States, and a community bank in New York was hit hard, by fifty percent, and many people were lining up in hopes of recovering from the disaster. New York's Social Bank, once widely trusted after 120 years, is now facing unprecedented difficulties. With Moody's downgrading Credit Suisse to "junk" and banks across Asia following suit, the U.S. banking sector was swept away by a hurricane and clouded over. Starting in 2022, commercial real estate in the U.S. is worth more than 11%**, which is already a distant dream, and there is no way back for bankers. The turbulent situation in the U.S. financial industry is a huge gloom for the entire country.

1. Dark clouds before the storm.

A community bank*** in New York fell sharply, causing the rest of the region to take a heavy hit in the banking sector, and the U.S. financial sector was once again in turmoil. With Moody's downgraded, the situation has gotten worse in the midst of this unstoppable economic storm. The unprecedented plunge in the U.S. housing market has shaken the banking system in the face of an unprecedented financial crisis. Major U.S. banks are facing unprecedented difficulties and challenges.

2. Turbulent finances.

The U.S. financial markets have changed dramatically, and a storm has erupted at the social banks in New York that has pushed the storm to a new peak. With commercial real estate** declining sharply, the U.S. financial markets are experiencing unprecedented turmoil. Depositors are frightened, they are worried about the safety of the bank, the situation is dangerous. Will this economic crisis affect the U.S. financial sector? Maybe it won't be long before everything falls out.

Problems facing the U.S. banking system.

The U.S. banking industry is in the midst of a severe test, and the credit risk between banks is accumulating and is on the verge of crisis. As Yellen warned in a hearing, the entire U.S. banking industry will face a severe test.

1. Overlapping credit risks.

The credit crisis of U.S. banks is getting worse and worse, and the credit crisis is getting worse. At present, China's commercial banks are in a very difficult period, and their credit risk has become the focus of people's attention. The banking system is increasingly exposed and faces serious challenges.

2. The dangers posed by potential crises.

The banking system in the United States is fraught with dangers and dangers. U.S. Treasury Secretary Janet Yellen warned in a hearing that borrowing losses, reserves and liquidity in the banking system would be challenged like never before. The entire banking industry fell into a dead silence.

The survival and development of Bank of America.

Banks in the United States have been hit hard, and there are constant financial turmoil. Federal Reserve President Jerome Powell's insistence on not lowering interest rates, will he be able to weather the storm? How will banks react in the face of such an unprecedented crisis? The road ahead will be a difficult and difficult journey.

1. The Fed's insistence and loose monetary policy.

US Federal Reserve Chairman Jerome Powell insisted that interest rates remain unchanged and resolute. The US Federal Reserve (Fed) has launched a cyclical funding program aimed at saving the banking sector, which has given a glimmer of hope to the current difficult situation. The US Federal Reserve has begun to loosen monetary policy in a targeted manner in response to the widespread bank explosion, but it is doubtful whether it will be able to turn the situation around.

2. The life-and-death decision of the banking industry.

U.S. banks are in the midst of an existential crisis, and they are facing enormous existential challenges. Both large and small and medium-sized commercial banks are facing unprecedented shocks. Therefore, how to effectively resolve the current financial risks has become a major issue that all commercial banks urgently need to solve. On the brink of life and death, the future of the financial industry is full of thorns.

The conclusion: another financial turmoil broke out in the US banks, and various risk factors were intertwined to pose a huge challenge. The outbreak of community banks in New York triggered a huge financial turmoil and triggered a huge financial crisis. The U.S. banking system has fully revealed its own weaknesses, and credit risk has accumulated to a new level, and it is facing severe tests and uncertainties. There is no doubt that the Federal Reserve's insistence and release of monetary policy have given banks some comfort, but the country's survival is uncertain. In the face of such a severe situation, the financial industry is facing a severe test, and how to find opportunities in the crisis is a major issue that all those engaged in the financial industry must face. It is hoped that the U.S. financial industry can calm down in the storm, turn the crisis into an opportunity, and create a better tomorrow.

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