U.S. Backstops Bank Deposits to Avert Crisis

While the Fed promises to "fully protect all depositors," some question the moral hazard of protecting banks from the effects of poor decision-making.

By Craig Torres & By Christopher Condon | March 14, 2023 at 05:57 PM

Photo: Silicon Valley Bank headquarters in Santa Clara, California, on March 9, 2023.

U.S. authorities took extraordinary measures to shore up confidence in the financial system after the collapse of Silicon Valley Bank (SVB), introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the entire nation's deposits.

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News

1 Fed Lowers Interest Rates by a Quarter Point

2 Fabricating a Treasury Function from Scratch to Support an $18 Billion Business

3 U.S.–Euro Rates Gap Is Set to Widen Again

4 Subway Builds a Fast, Fresh Approach to Treasury

5 Tariff Inflation Will Likely Be Transitory

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Fed Lowers Interest Rates by a Quarter Point

By Amara Omeokwe | December 18, 2024

However, officials reduced their expected number of rate cuts for next year from four to two.

Fed Lowers Interest Rates by a Quarter Point

U.S.–Euro Rates Gap Is Set to Widen Again

By Catarina Saraiva | December 16, 2024

In his first term, Trump bashed the Fed for allowing higher interest rates in the U.S. vs. Europe to drive up the dollar and hurt exports. Next year will likely bring more of the same, as the U.S. economy remains considerably stronger, meaning rates here will likely fall more slowly than in the Eurozone.

U.S.–Euro Rates Gap Is Set to Widen Again

Tariff Inflation Will Likely Be Transitory

By Catarina Saraiva | December 13, 2024

Nevertheless, the Fed may feel compelled to raise interest rates as soon as the first signs of a tariff-led bump in inflation emerge.

Tariff Inflation Will Likely Be Transitory

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