Expectations of raising interest rates in the United States with the continuation of the banking crisis

2023-05-01 06:39:30

An upcoming meeting of the US Federal Reserve, during which it is expected to take a decision on increasing interest rates on the dollar for the tenth time in a row.

US Federal Reserve

Next Wednesday, all eyes will be on the outcomes of a meeting held by the US Federal Reserve to take a decision on increasing interest rates on the dollar, amid growing economic difficulties.

A Wall Street analysis shows that the Fed will raise interest rates by 25 basis points to a range of 5.00-5.25%, which will be the tenth increase in a row.

Global economic concerns are escalating from the continuation of the banking crisis, with expectations of the collapse of the “First Republic” bank in the United States, in addition to the global economic slowdown.

And the US authorities asked several financial institutions to submit offers to buy the assets of the “First Republic” bank, which has been in trouble since mid-March.

Despite 10 increases in interest rates on the federal funds in America, inflation is still above the level of 5%, while the target is 2%.

It is expected that the central banks in the Gulf countries will announce the same increase that the US Federal Reserve will approve on interest rates at its meeting.