|2023/03/17 / Erste Group Research|
US Fed should not ignore recent events
Next week, the FOMC, the US Federal Reserve's monetary policy-making body, will meet. Even before the turbulence surrounding the ultimately insolvent US bank Silicon Valley Bank (SVB), the outcome of the upcoming meeting was uncertain. Expectations ranged between a rate hike of 25 or 50 basis points (bp). With the SVB bankruptcy, expectations have shifted downward, so now the decision will likely be between a 25bp rate hike or unchanged policy rates.
Further, a first flash estimate of Eurozone PMI data for March will be published. The sentiment of Eurozone companies could cloud over slightly because it can be assumed that the turmoil in the US banking sector will also cause uncertainty in the Eurozone.
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|Author||Erste Group Research|
|Product name||Week ahead|
|Topic in focus||Macro/ Fixed income|
|Economy in focus||Eurozone, United States|
|Currency in focus||Euro, US Dollar|
|Sector in focus||-|
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