Today's Article

“I do not see any 5pervasive problems in our banking system.”

They say the 6volatility in finance isn’t linked to 7insolvency, or assets that are difficult to value, like it was in 2008. Instead, the concern is, in part, over 8uninsured deposits and long-term 9treasury bonds that have 10crumbled in value.

“I do think fear is, is the big problem now.”

Quick action from the Federal Government is 11momentarily relieving those worries. But many banks, especially smaller lenders, are 12facing pressure from continued interest rate hikes by the US Federal Reserve.

“The question is how persistent and how much more serious, if at all, will that 13instability be?”

Still the economy remains hot. And the 14consumer price index for February, out Tuesday, reveals inflation is cooling, but still triple the Fed’s target. Now, the Fed is at a 15crossroads.

“They should just pause, take a look around.”

Though Moody’s says America’s banking system is generally healthy, that sector, and the economy, are 16teetering on the edge as the 17central bank tries to keep everything in balance.