IGI Logo

Below on Quote on Fed rate hike By Sunil Damania, Chief Investment Officer, MarketsMojo

We would have preferred that the Federal Reserve not raise interest rates, given the current state of the banking industry in the US. PacWest Bank is currently facing financial difficulties and may follow the same path as SVB and First Republic.  The recent rate hike is likely to complicate the situation.

In addition, the US may face challenges in its commercial real estate market, which is another potential danger.

It is our belief that this will be the final rate hike from the Fed this year, and there is a high probability that the Fed will begin reducing interest rates in the second half of 2023. The US banking industry's current state is far from satisfactory and could pose problems for the global equity market.

Above views are of the author and not of the website kindly read disclaimer