after careful analysis and deliberation, the boards of the fdic and the federal reserve voted unanimously to recommend and the treasury secretary in consultation with the president determined that the fdic could use emergency systemic risk authorities under the federal deposit insurance act to fully protect all the depositors and winding down svb and signature bank. it's worth noting that these two institutions were allowed to fail. shareholders love their investment, unsecured creditors took losses. the boards and the most senior executives were removed. the fdic has authority to investigate and hold accountable the directors and officers of the banks for the losses they cause and for any misconduct in the management of the institutions and the fdic has already commenced these investigations. further, any losses to the fdic's deposit insurance fund as a result of uninsured deposits insurance coverage will be repaid by a special assessment on banks as required by the law. the fdic has now completed the sale of both bridge packs to acquiring institutions, your community bank for signature

the federal reserve is auoin to signature bank.eral reserve is going to report— signature bank. the federal reserve is going to report on _ signature bank. the federal reserve is going to report on its _ signature bank. the federal reserve is going to report on its findings - is going to report on its findings of what happened at silicon valley bank. after that we are going to see the insurer that ensures deposits in us banks releasing their own report about what happened with silicon valley bank. what a lot of people are now talking about is what is going to happen to first republic, that the bank. remember, their shares had dropped by 95% since the beginning of the year because so many investors are worried that could be the next bank to fail. conversations are happening between government officials and private equity to see if they can put something together to try and save the bank. . ~ something together to try and save the bank. ., ~ , ., something together to try and save the bank. . ~' ,, something together to try and save

second, the federal reserve. the bank term funding program a new facility to provide term funding to all insured depository institutions eligible for primary credits at the discount window. based on their holdings of treasury and agency debt securities. this program, along the existing pre-existing discount window has helped banks to meet depositor demands and bolster liquidity in the banking system. targeted approach is necessary these actions have helped destabilize deposits throughout the country and provide depositors with confidence their funds were safe. in addition to these actions on march 16, 11 banks deposited $30 billion in the first republic bank. the actions of these large and midsize banks represent a vote of confidence in the bank system. and demonstrate the importance of banks of all sizes working to keep our economy strong. the deposits in certain assets of signature bridge banks were acquired from the fdic's and on march 26 the deposit in certain assets of silicon valley bridge bank acquired fro

i have in front of me from the federal reserve in particular looking at the loans the federal reserve has made to the depository institutions. there's been a significant shift and in particular as it relates to other credit extensions. other credit extensions noted that they are taking collateral from the fdic. that account, march 9, zero dollars. march 16, 1 week later, $57.6 billion. march 203rd, 1 week after that, $178.6 billion. the federal reserve is taking collateral from the fdic and loaning the money what is the federal reserve engaged in that? >> it's lending through the discount window to the bridge institutions that were established. they are lending to banks. there is a provision in the statute that clearly contemplates that. >> so when i read footnote seven that wouldn't have fallen in the line of either primary credit or secondary credit? >> for the purposes of enhancing transparency to the public, that line was broken out so that everybody could see exactly what it was. >> that is helpful then if i can shift to you as we look at this dramatic increase, is there a reason

kriti: talk about how the federal reserve moves next. you are looking at 100 basis points of fed cuts by the end of the year. if i have your thesis correct, you are not expecting cuts until 2024. if you see the dramatic drop, will that shift your view? joe: it would, because that is not our baseline. it would imply that inflation is coming down more weekly in the sticky components, wage-based measures. the recommendation to policymakers is to stay the course. going back to history, the lesson that continues to stick in my mind is from the mid 60's, 66 and 67, the federal reserve cut rates. the labor market was tight and slowing. the cut rates aggressively. we avoided a recession. within 12 months, the federal reserve had to triple defend fund rate. again, this time is different from the mid 60's. it is a reminder that you have to stay the course until the job is done. kriti: so glad you noted out on history and did not leave me on a ledge, always appreciate that. let us put some numbers on what the federal reserve will do next. 25 basis

my question is, mark, the federal reserve did the exact same thing. they are rolling out $90 billion every month. if they do a mark to market, they are losing half their value that they bought they treasury at 2%. now, they have to sell it at 4%. that is a 50% loss. are they losing $45 billion a month as they are rolling this off? another question -- host: let's go with that because we are running short on time. guest: you are right. effectively, the federal serve had -- reserve had the same issues on paper that the banks do. the banks had deposits during the pandemic. they took that money and in many cases, invested in treasury bonds and mortgage securities. they bought them when interest rates were very low. now, interest rates are higher. the value of those securities are lower. that is a problem for a lot of banks, they need to sell those treasury mortgage securities to generate cash to pay off depositors and meet their other funding needs. that is fundamentally the issue here in the banking system, ultimately why many reasons why svb failed and s

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guest: this bank is overseen by the federal reserve.pecifically, the supervisory san francisco fed. that was the primary regulator of the silicon valley bank. the totality of the banking regulators, the federal reserve, the fbi see. the regular -- regular agencies were in harmony with this particular svb overseen by the federal reserve. host: they testified about what happened there. what did you hear from them? guest: what i think was really important is that they are going to do a study the itself looking internally to see if we missed some things, if we had sufficient tools to manage risk, so they are going to look internally to see if we missed something, what happened here? were there supervisory failures? do we need a whole new set of banking rules? we don't think that is the case. we think this is idiosyncratic. we think the fed didn't have the necessary tools to control what is happening. again, acknowledging that the foundational purpose here is not the fed, it is svb. that acknowledgment on the part of chair powell and others

well, actually, yes, to the post of head of the federal reserve system.hat is the federal reserve system sir, it is an analogue of the central bank formed by 12 reserve banks, the so -called commercial banks. i emphasized this, that is, respectively, national banks are banks. the states collectively form this federal reserve system, and formally it is the federal agency that manages the financial system. the usa is wondering what the usa is afraid of, for example, yes and what do they expect from russia financial leaders , let's say in the us, are increasingly talking about the fact that the process of de-dalorization is underway. and if the dollar takes up less and less share of international trade, then this will greatly affect the possibilities of paying off external debt and, accordingly, servicing it. for example, there is already such a border, it is defined by americans, and specialists. uh, 40% borderline. now the dollar approximately occupies 47 46% of world trade, as soon as it reaches the 40% border, the united states will not be able to servic

introduced was this guy named alan greenspan, who worked at this obscure institution called the federal reserve, which was in charge of what you would call the money supply if you hold out a piece, a $20 bill, very few people carry these around anymore. but you'll see it says federal note on your bill. the fed decides how much money there is in the financial system and in the process of managing supply of money. it manages interest rates, which affects how much it costs people to borrow to take a mortgage or take out a car affects stock valuations and alan greenspan was this bizarre figure who didn't seem to speak english, who enjoyed speaking in really kind, garbled an obscure syntax. and yet the markets went crazy whenever he said something. so he was one of these first interesting characters that i came across and i kind of took a liking to this area of coverage and decided to, can you continue it? and i realized that if i wanted to do anything in writing about economics and finance that i was going to need to go work at the newspaper that i grew up watching my father read, which i never tho

a lot federal reserve meets again next month question ma_ federal reserve meets again next month question these market forecasters have _ month question matt a lot of these market forecasters have been - month question matt a lot of these i market forecasters have been reading their tea leaves and they have all said we're going to see the us federal reserve raised interest rates again. remember, raising interest rates means it's more expensive to get a mortgage for your home, or even to pay credit card debt. those are interest rates that are impacted by what the federal reserve does. so that all makes it more expensive, which hopefully will make people spend a little bit less and maybe, just maybe we will see that the economy will cool down a bit. �* , ., that the economy will cool down a bit. 2 ., , ,. that the economy will cool down a bit. , ,. bit. it's a complex picture. many thanks forjoining _ bit. it's a complex picture. many thanks forjoining us. _ one of the two tennessee lawmakers who were expelled from the state house of representatives last night has told the bbc that he inten

the other banks struggling to stay afloat and with the federal reserve is now planning. custody after the - - at least 11 people wounded. authorities the two groups have been doing for months when it finally world over. a homeowner is charged with allegedly shooting and killing his neighbor who is using a police finding him dead in the driveway. a quick thinking middle school student jumping into action when the school bus driver suddenly passes out behind the wheel. and, the big moment at the nfl draft. the 13-year-old jets fan who is now everyone's topic. >> from abc news world headquarters in new york, this is world news tonight with david muir. >> david: good evening, it is great to have you with us on friday night. i am wayne johnson in for david tonight. as we come in the air, we are watching the new tornado warnings in east texas. one of two systems tracking across the goal plan to the northeast. 30 million americans on alert through tomorrow for large hail, damaging winds and some triggering our tornado watch in bell county texas at this hour. ominous clouds of p

congress has hearings with federal reserve. think president biden is making a mistake by saying you're totally independent, we're not going to have these conversations or you're not going to hear from me. absolutely, that discussion should take place, and the view ises of the administration are important -- views of the administration are important as one factor for the federal reserve to consider. and and so that would be my approach. i think you have to engage in those conversations. liz: you know, i want to bring up the issue about donald trump because you, actually, threw it down as a gawbt let on the abc announcement that you were going to run for president. and forgive me if i'm misinterpreting this, and feel free to clarify, but when you said that the president, former president should drop out of the race, you spun it not from the position of what some critics of the president say, he's not fit to serve, he's been charged with a crime, there are more charges down the road, but rather, you spun it as the trial would be a

in the months since we last chatted with you, we've seen the federal reserve have a serious interest rate hikes. is it working? guest: good to be with you, i can't believe it has been three months. that went fast. nice to be with you. yeah, i think they are working. the intent here is to slow economic growth so that it quells the painfully high inflation. but i think the effort that made progress because growth is slowing, inflation is moderating. it is a long way to go, but hopefully we continue to see inflation come back in over the next few months, the next year. yeah, i think the efforts are working. i will say, there are some negative side effects to the hiring rates, and one of the most obvious is the pressure on the banking system. i do think one of the reasons why we saw this stretch of failure recently in the past few weeks is related to the interest rate hikes. but all in all, i'd say that the efforts are working, yes. host: when it comes to what percentage we should be using, a half-point, a quarter point, any concern about their decisions on those rate numbers? >> the ope

to the upcoming week kansas city federal reserve president thomas tony will join me. china rating an american company in shanghai as fbi director warns of a massive cyber threat from beijing, jonathan ward with his warning to every u.s. corporation. first as president biden launched his reelection campaign this last week, lawyers for his son was meeting with justice department officials. hunter biden has been under investigation since 2018 for suspicious activity reports we guarding foreign transactions, here is harvard law professor alan church was told me last week. >> it was the biden people who sought the meeting which means they're probably negotiating mode. people don't seek meetings for status or an update you can do that on the phone when you bring in a group of lawyers to talk to people on the justice department it is generally part of a negotiation. maria: joy to be one of the key congressional members leading the investigation into the biden families influence peddling the house oversight committee chairman james comer. thanks for joining us this weekend. >

that said, for those that are watching the federal reserve and whether or not they are going to raiset meeting, this according to early guesses by economists, they are suggesting that before we got this jobs report it looked like a 50, 50 chance we would see a rate rise. i think the fact we are still seeing a strong jobs marketed in the united states means the odds of a rate increase have now increased around 70%. the reason we are dealing with high interest rates is historically high inflation and there's good news on that front. specifically food inflation. an important measure of how food commodities — such as grains and vegetable oils — are priced fell for the 12th month in a row in march. the food price index, which is produced by the un's food and agriculture 0rganisation, tracks monthly changes in the prices of food commodities. it fell 2.1% between february and march and it's now more than 20% lower than a peak, which it hit in march of last year. prices soared after russia invaded ukraine because both are majorfood producers, particularly of grains such as wheat. this decline

liz: the federal reserve -- >> it causes these problems.: the federal reserve says the banking system is sound. larry fink at the top of the show of blackrock said the big banks are in a terrific position. we know that there are fewer big banks than there are medium- sized and regional banks, when you put them all in the same pot, is it boiling? is it going cold? how do you view when the fed and when the treasury department and janet yellen say the banking system is secure and fine. >> so in the fomc statement, it had the line oh, our banking system is sound and secure. well, that's what i call cheap talk. so i be much more assured if they provided some evidence. we already know that the stress test that they concocted is unrealistic. the adverse scenario had the long rate going to 0.5% and the short rate at 0 so what i would like to do is to have a redo of the stress test. i would like the evidence that our system is found and secure. i fear in the background -- liz: we get that. that's for sure. well you make a great point about the stres

the anticipation, i think, is that the federal reserve will take note of both moderating, though not capitulating inflationary pressures, and the withdrawal of lending from the banking sector, particularly from small to medium-sized banks. therefore, we anticipate one more hike, then the pause, and of the communication of a pause. the potential mistake would be on the hawkish side. and the fears about inflation, that we have to tackle this menace, and if the higher for longer narrative is a re-acceleration, more than one hike, two or three, and there was more dramatic economic downturn, what that could mean for the banking sector and other unknowns in the financial sector. that would be the risk. tom: not just on the banking sector. a reminder for viewers, two straight weeks where they have had to tap the emergency lending facility from the fed, those emergency loans for the banking sector. in terms of loans from banks, the broader economy at the lowest level since 2008, so the stresses are clearly there? ben: unique challenges are multiplying. tom: is there systemic risk? ben: that

federal reserve system refers to the 3 law. so that's 5 american bikes. it refers to to torture bank in germany, to credits researchers. these are the banks that are, are too big to failure drones. toys, federal reserve is foster the british. no, no, we can get the form. did it in the semester era, which from cook really. good me, joe. you cook my kind of 30, but i leave them at the last peanut. she's been christian for financing with a dominant financial group. a bikes and their objective control, the international, international federal reserve by curriculum. and of course you would you be sure to g i media is about image 12 feet, which $1000.00 you can think you meet that during the polar globalism is uni pole. and therefore the head, jeremy of american financial. and so what we've got to do is identify the threats that we have offensive, very dramatic development, only nationally as the very k, to kill time time to sit down ah, needs to come to the russian state portal. and again, i'll send that through bob and speaking with the kremlin media machine

maria: i think important we heard from federal reserve on potential for recession, and important thatthe impact of this banking crisis, but, of course, we've been talking about major banks this morning mark tepper with me big banks kicking up earnings season tomorrow jp wells fargo citigroup before opening bem we will sear guidance from those executives, i wonder what you think mark jump in in terms what have we might hear in the way of guidance for the year. mark: you know, i think what one of the things that everyone is going to have the eyes ears on what is going own with deposits, deposits have been indialing headed towards money maesht funds they need deposits to make loans, but look, as far as guidance goes i pay very close attention to senior loan officer southwest showing that lending standards are tightening, i would expect to hear some of that from big banks as far as guidance, mark your take on that? >> i agree with you mark i wanted expect something around two items you mentioned, in addition to that given the fact that these bing universal banks are the bloodline to u.s.

they are reacting to the federal reserve minutes.out of alibaba, that has weighed on the hang seng today. looking at the hang seng today. looking at the next board to see how the day ended on wall street so you can see how investors are basically reacting to the news, they had inflation numbers out yesterday and also the fed minutes as well which, you know, to some it is heightening fears about what could be ahead in terms of future interest rate rises as opposed to cuts, which is what markets have been desperately trying to pricing despite everything jerome powell is saying. you up—to—date on all things business and use. have a really good day. i will see you soon. —— you are up—to—date. hello there. storm noa has been bringing problems to transport, with road, rail, ferries and airports affected. meanwhile, out to sea, some wild weather in cornwall, with these large, mountainous waves pummelling the coastline. some of the waves were thought to be about eight metres high. that's the same height as two double decker buses stacked on

david: what is the salary of the chairman of the federal reserve board?owell: it is around $190,000, i believe. david: if you need to sell something, what do you do? you have to clear it for 45 days? chair powell: that's right. if we have family expenses that exceed my salary, then we have to sell an asset. david: do you think that is a fair salary for the job? chair powell: i do. [laughter] david: today, how do you coordinate with central banks in england, japan or china? do you have regular conversations with them about what they are doing? chair powell: we do. i meet six times a year in switzerland with the heads of all of many central banks. even the small and medium-sized ones, in basel, at the bank for international settlements. in addition, among the major central banks, i have regular dialogues going with most of them. what we are talking about is what is happening in the economy, and how are you thinking about policy, and that kind of thing. it is very important that we keep those discussions going, because particularly in a crisis, you need to k

is that a threat federal reserve has to take more seriously?kathy: it is a great point in that this is not just a u.s. phenomenon. it is global in nature. that can make it more difficult. we like to import disinflation, which we have most recently import price data has been favorable helping bring down overall inflation numbers. what i think you are seeing across the board whether in u.s. or abroad, it is very difficult to lower these inflation rates quickly, especially because they grow so high relative to the target and have persisted for quite a period. the only part of this that was transitory was -- prices and the services side which we were always worried about, that is where it becomes more difficult to rein in. even if you look at the super court services number, which it take that housing, you are seeing some encouraging signs. it is not fast enough, that is the problem. >> very briefly, as you know in canada, the bank of canada is on hold with rates. we are gearing up for that next fed decision. what is your expectation? kathy: we thi

the federal reserve's target is 2%. and so we expected morgan stanley for that federal funds rate to be race again next month to try to well, this inflation slow spending down. >> so george, you did mention the banking crisis. it seems so yesterday. right who are tight all. we're talking about as phoebe and that's it. you know, the stability of the hold regional banking system. nobody's talking about that anymore. has that gone away or is that just? background peak? >> it becomes headline news when it happens. but the federal reserve, the treasury and fdic comes out and they say they're going to backstop personal savings. they're going to force the rules are going to they're going to make sure that you have confidence in the banking system. so did take much for that to go away. we sought to keep an eye on it, though, because you still have a lot of regional banks, small banks. and i think there's going to be more of a check to make sure that they're holding more cash instead of investing it in and lending it out. so we d

>> i've said that even before the federal reserve said that over a month ago.signs of a potential slowdown. we're seeing it in bank deposits, we're seeing it in the index of leading economic indicators. stuart: that's true. >> and even when you look at the federal reserve's forecast of growth, 0.4%, that that's right on the edge. stuart: clean cut answers from an economist. i'm not being facetious, it's hard to get a straight answer. got that. all right. of listen to this one. in the last two years, credit and debit card spending is down and down bigtime. how much? >> hope you like my answers as much as his. stuart: well, he was good. [laughter] >> spending on credit and debit cards rose at the smallest case thanks to slower wages, fewer tax refunds and the end of pandemic-era benefits. bofa reporting spending rose .1%, the slowest pace since february of 2021. households that make more than 125k a year dropped in annual after-tax wages for the first time since the heart of the pandemic, may to -- 2020, thanks to hiring freezes and job cuts. lower income familie

tom: i want to celebrate michael mckee's work talking to the federal reserve bank in boston, the federalouis and i wanted go back to something, this is so important because it is what surveillance doesn't what mckee lives every day. mom larry and on the side is a singer. here's one of his key song from hamilton years ago and the layer ask are important and we really write to the idea of what the fed will do. talk less, smile more, don't let them know what you are against or what you are for, you can't be serious, you want to get ahead, pool's who run their mouth soft wind up dead. you wrote about this. dr. el-erian: i did not quite right that whole thing. i just want to join you because you are amazing. i always listen to you and i end up having because of you many other insights and the way you interview there'll officials and questions at f1 tsipras conference are refreshing. tom: are they talking too much? dr. el-erian: absolutely they are talking too much. just talk to former fed officials and see how they feel. michael: the follow to that, that they would give you, you go back to th

the federal reserve has a forecast for year end.y think unemployment is 100 basis points higher. 4.5%. this is the kind of pain that we were talking about that we haven't yet experienced. when we do come i wonder how -- how much things will change. tom: when we rip apart the numbers in the cross minority unemployment rates are something i or elizabeth warren never imagine. i think 3.5% is great so why aren't we celebrating this and solving inflation in other ways? lisa: on one hand, if you have people who are fully employed, they will keep spending and you end up with a more persistent inflation which is the theory. if you start getting layoffs, that also has a cycle of its own and once they start to feed on each other, this is the tipping point. are we ending up in a situation were either we are overly employed and can get inflation down or do we start a cycle of unemployment that is hard to stop. i think that is the big fear. jonathan: the fed has to go from 3.5% to 4.5% in a couple of years. tom: it's a managed statement forward.

we'll ask federal reserve vice-chair randal quarles. he is here. one former advisor to maggie thatcher. china, what will it be doing for five years, already done in five years? we'll ask retired u.s. air force brigadier general rob spaulding. we worry about the forecast. that is tepid as you can get. i wonder what my friend jonathan corpina own the floor of the new york stock exchange. if that is true, jonathan, always good seeing you, that is as weak as you get, for as long as a lot of people can imagine. what do you think? >> neil, so let's kind of take a step back and look how they look at this, right? this is kind of like a big overview of everything that is going on. it is very realistic, right? the points they really focus on are headwinds for quite sometime, probably will have, right? they talk about russia, ukraine crisis. they talk about the aftereffects of covid. they talk about inflation and interest rates. all these different things are topics we've been facing. uncertainty of what the next month, quarter, half year, year looks like. i

persistent inflation which means persistent federal reserve.nings are too high coming down quickly, with all those things the bears have going for them, they're on the verge of being shut out really big time. if the market breaks out they will be in big trouble. i think the next leg higher could be driven by brilliant mavens running out of coffee shops in the hamptons. you know when the rubber hits the road on wall street, when missing big rallies becomes more important than sounding smart. my next guest says beware of doomsday forecasts. laffer-tengler, ceo, cio, nancy tengler. this morning my trip to work was delayed at george washington bridge at the toll. at 6:00 a.m. i assume it was an accident. we start to enter our way across, saw number of large emergency vehicles on the bridge. i assumed there was a car chase. turns out police were able to talk a man from jumping. kudos for police doing a good job. it underscores, how disaster, potential disaster stops us in our tracks. the same thing with the stock market. it is tough sledding because

director of adverbs at the federal reserve. there, suddenly. when you get slowdowns, they usually happen suddenly. are we at the beginning or the middle of suddenly for the fed? vincent: we are tuning the quarter -- corner toward suddenly and we are not sure what is at the other end. the plain fact is, the business cycle is uneven, regular. quite dynamically driven. when the unemployment rate starts to rise, it keeps rising. you do not see it at first, then it happens all at once. that is how you can have the federal reserve staff forecasting a mild recession, even as we are getting data like mike just reported. the economy still has some momentum. tom: 21 years ago writing about great inflation, we had a sudden pandemic driven great inflation. can you state that the great inflation of the last two or three years is over? vincent: i got the headline you kept repeating, inflation is halved. i keep having to remember where it started, 9%. we cannot declare victory yet. the great inflation is not over until the fed says it is, bec