CNBC’s Steve Liesman reports on the Federal Reserve minutes from last meeting. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Fed Minutes: Bank Turmoil Effects Will Likely Lead to Recession Later in 2023
The latest Federal Reserve minutes reveal a growing concern among policymakers regarding the potential effects of ongoing bank turmoil. The global banking sector has been facing numerous challenges, ranging from increasing non-performing loans to growing market volatility. If not addressed promptly, these issues could have severe repercussions, potentially leading to a recession in the later part of 2023.
One significant concern highlighted in the minutes is the rising number of non-performing loans across several major economies. The economic uncertainties caused by the COVID-19 pandemic have put tremendous strain on businesses and individuals, increasing the risk of defaults on bank loans. As these loans turn bad, it puts additional pressure on already struggling banks, thereby weakening their overall financial health. If this trend continues, it could create a ripple effect throughout the entire financial system.
Market volatility is another key issue worrying the Federal Reserve. The recent surge in market turbulence, stemming from concerns over inflation, interest rate hikes, and geopolitical tensions, has further destabilized the banking sector. Fluctuating markets can quickly erode bank profitability and erode investor confidence, leading to potential liquidity issues. This poses a significant risk to the stability of the financial system and the broader economy.
Interestingly, the minutes also suggest that the Federal Reserve is cautiously evaluating the potential impact of the housing market on the banking sector. The recent surge in housing prices fueled by historically low interest rates has raised concerns about a potential bubble forming in the housing market. A burst of this bubble, coupled with a slowdown in the housing sector, could have severe repercussions for banks heavily invested in mortgage-backed assets.
Taking all these factors into account, it becomes increasingly evident that the ongoing turmoil in the banking sector can have far-reaching implications for the overall economy. The potential recession in 2023, as suggested by the Fed minutes, is a genuine cause for concern.
In response to these concerns, central banks will need to adopt a proactive approach to restore confidence and stability in the banking sector. This may include implementing stricter regulations, conducting regular stress tests, and possibly even injecting liquidity into troubled institutions. Moreover, policymakers will have to monitor market conditions closely and employ monetary tools judiciously to mitigate the risks associated with the potential recession.
The implications of a recession are not limited to the banking sector alone. A slowdown in economic activity affects businesses, job growth, consumer spending, and investor sentiment. Such a downturn can have long-lasting consequences for the broader society, including increased unemployment rates and financial hardships for households.
As we move forward, it is crucial for policymakers, regulators, and financial institutions to collaborate closely to address the ongoing challenges within the banking sector. Timely interventions and proactive measures can contribute to mitigating the risks associated with a potential recession and ensure a more resilient financial system.
However, it is important to note that economic predictions are inherently uncertain, and there are various other factors that can impact the trajectory of the economy in the coming years. While the Fed minutes serve as a crucial warning, policymakers and market participants must remain vigilant and agile in responding to unfolding events to minimize the potential fallout from the turmoil in the banking sector.
this isn't a recession, the recession being there for last 8 to 10 year, was the recession that leads
Us Unto this depression by the level of deficit, this depression will pass 2024 with light speed we have to expect the next 10 year working real hard to increment a growing GDP balance,
And regain the leadership of the world market,
HOW ???
Instead of trying to predict whether or not we’re going into more recession and keep losing your money, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every quarter according to Bloomberg.
If we're NOT in recession NOW, what do you call this?
We need Trump back!
DON'T WORRY THE FED AND YELLEN WILL FIND WAYS TO PRINT FREE MONEY BOTH UNDER THE TABLE AND ON THE TABLE, BECAUSE ALL BIDEN KNOWS IS TO PRINT MONEY TO BUY THE VOTES.
Just pay the 30T or Trillion debt with insurance policy.
New loans 120T,
Total principle=30T+120T=150T=100%
Tenure loan 150T*3=450T=300%
FutureIncome=450T=300%.
Total=900T
Insurance Formula:
(Pay 1=10% or less and get 10=100% or more).
OneTimePremium=Premium=10X
10X=900T
X=900T/10
X=90T
Extra=(New loans)-(X)
Extra=120T-90T=30T(cash)
Get now=30T
Get later=450T.
Dividen 10%
Split to reinvest=5% and spending=5%.
After 1 year
1.05^1*0.05*30T=1.575T(for spending)
After 20 years
1.05^20*0.05*30T=3.97T++(for spending).
I hope it can reset your debt.
Note:if the government takes the future income after 30 years it may double or more than 450T.
This is the last straw, The fed caused this and the fed has to pay for this.
WE ARE NOT GOING TO TOLERATE BEING HELD FINANCIAL HOSTAGES OF JOE BIDEN OR ANYONE ELSE.
SCREW WITH MY MONEY AND YOU WON'T HAVE A HEAD.
THAT'S NOT A THREAT, IT'S A FACT OF REALITY THAT YOU BETTER CHECK ON. I'M ANYTHING I NEED TO BE TO GET THE JOB DONE.
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated..,
It stuns me enormously the way that I go from carrying on with a typical way of life to making over 63k each month
I've gleaned some useful knowledge throughout recent years that there are a lot of plenty opportunities in the financial markets;all it takes is just to focus on the right thing. Credits to Gregory Thomas Patchak
A watered down lip service. The world is dumping dollars and Democrats own this disaster.
In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.
Spot <on! You are getting good at being ahead of the trend. Good job man! You nailed it. Pretty funny that volatility has been so compressed that we've become do conditioned as market participants that the slightest 3% move feels like a 15-20% move. I'll advise you to go into crypto trading because it has higher profit returns, trading bitcoin options provide excellent opportunities for investors aiming to maximize gains while limiting their losses. Using multiple call (buy) options CAROL ANN MCELROY creates a strategy capable of six return times higher the potential loss these can be used in bullish and bearish circumstances, depending on the investors expectations, thanks to her I've earned 12.8' BTC! Historically, fortune favours the one who invest in though moments.
Good. We like it.
What is a mild recession… Because I know if I catch a mild anything even a headache I gotta rest for a day … Is it the same ?
Uncertainty Uncertainty Uncertainty aka we have no idea
$104 billion drop in bank loans in just 2 weeks. If this keeps up, that’s $2700 billion drop in a year. In 2022 the GDP was $23 trillion. A $2.7 trillion drop is 12% reduction in GDP. That’s not a mild recession
Millennials will finally have a chance to buy a home!
he crashes the market every Wednesday
Good the fed is doing their job keep hiking till the job is done
Average people: Get priced out of homes
Bankers: We might have a mild recession
Avg ppl: skyrocket debt
Avg Bankers: were going to continue the fight on inflation
Avg ppl: same
Avg Bankers: Svb goes under, regional banks on fire
Avg ppl: nothing
Treasury Department: its a crisis we need to hold all sales
Moral of the story: avg ppl get screwed over and the system is only made to help rich people
Hope having a paid off house will help weathering the economy
“Mild recession” is fed code for GET THE FVCK OUT! HOUSE IS ON FIRE!!
Fed caused it all