New Delhi: The banking crisis that started in America can engulf countries around the world. In two weeks, three big banks of America went bankrupt. Silicon Valley Bank got locked out. Signature Bank is on the verge of being sold. The condition of First Republic Bank has become critical. The crisis that started with America’s Silicon Valley Bank has so far drowned three banks and 186 such banks are standing in the queue. America’s Central Bank Federal Reserve aggressively raised interest rates, after which the condition of American Bank worsened.
An important meeting of the Federal Reserve Bank is going to take place tonight. Not only America, countries around the world are eyeing this meeting. Everyone’s eye is on whether the Fed hikes interest rates once again or whether there is a reduction in interest rates. The Fed has challenges. If the interest rates are increased, then it will be no less than an atom bomb for the banks of America. This can cause havoc in the banks here. If the Federal Reserve hikes interest rates, there could be havoc in the banks there. Banks can overflow. 186 banks are included in this queue. The US Federal Reserve has a tough challenge ahead.
If the Fed hikes interest rates, the current banking crisis will worsen and could overwhelm the banks. On the other hand, there is the challenge of controlling inflation. The US Federal Reserve has a tough challenge ahead. If the Fed hikes interest rates, the current banking crisis will worsen and could overwhelm the banks. On the other hand, there is the challenge of controlling inflation. In the US, the recent bankruptcies of the banks Silicon Valley and Signature Bank were attributed to exorbitant interest rate hikes.
