Asking the Federal Reserve to cut interest rates

According to the economic group Iran is an economist From the Street website, regional lenders are critical to US economic growth, and the country’s markets are calling for support from the Federal Reserve to prevent a banking crisis from causing a short-term recession.

In the wake of the collapse of Silicon Valley Bank Financial Group, the closure of Signature Bank and continued pressure on First Republic Bank, markets overreacted and bank stocks in Europe fell sharply on Friday.

Federal Reserve Chairman Jerome Powell told reporters in Washington on Wednesday that the tighter financial conditions associated with the banking crisis could “equal to or exceed interest rate hikes”; But he stressed that it is not possible to make this assessment accurately at the moment.

US banks reduced their borrowing from the Federal Reserve’s various lending programs this week, but support levels remain high due to ongoing concerns about the creditworthiness of the country’s regional bank deposit base.