Federal Reserve says recent turmoil in banking industry has stabilized, could still impact

From the US Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term semi-annual report on financial stability.

Headlines via Reuters:

• Recent turmoil in banking industry has stabilized, but could weigh on credit conditions going forward - financial stability report
• The banking sector overall remained resilient with substantial loss-absorbing capacity
• Policy interventions by bank regulators limit the potential for further stress, domestic banks have ample liquidity overall
• Funding strains were notable for some banks, but overall funding risks across the banking system were low
• It is prepared to address any bank liquidity pressures that may arise, committed to ensuring deposits remain safe and banks can continue to provide access to credit
• Large banks subject to liquidity coverage ratio had sufficient levels of high-quality liquid assets to withstand expected short-term cash outflows
• Silicon valley bank and signature bank were outliers in terms of their heavy reliance on uninsured deposits; most banks had a much more balanced mix of liabilities
• Runs on silicon valley bank and signature bank were of unprecedented speed
• Persistent inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and monetary tightening, alongside banking sector stress, are top-cited potential risks by survey respondents
• Prime money market funds and other cash-investment vehicles remain vulnerable to runs and contribute to the fragility of short-term funding markets
• Amount of high-quality liquid assets decreased for banks but remained high compared with pre-pandemic levels
• Commercial real estate prices have declined since November but valuations remain high
• Nearly half of respondents to fed survey on near-term risks cited US debt limit, which was not singled out as a risk in prior report

Nothing in those headlines re the bank stresses since March is of much surprise. A key question is if there are more bank failures hiding in the weeds.