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- Is the Banking Crisis Really Over? – Monthly Wrap Up
Is the Banking Crisis Really Over? – Monthly Wrap Up
by Craig Hemke Sprott Money
March has been quite an eventful month. In mid-March, we saw the banking crisis begin, which started with SVB becoming insolvent, causing the Fed to pivot from their original plan of raising interest rates to cool down the economy.
Since these rate hikes put pressure on banks, like SVB, the Fed now must decide to either cut rates to stop the bleeding or continue. In the last FOMC meeting, the Fed increased rates by 25 basis points, instead of the 50 basis points that most investors predicted. Does this mean the Fed will start cutting rates?