Wednesday, May 14, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

Rate Hikes Will Lead to Bank Failures

Simon Osuji by Simon Osuji
July 27, 2023
in Business
0
Rate Hikes Will Lead to Bank Failures
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

While speaking to CNBC, Shark Tank investor Kevin O’Leary said that interest rate hikes could lead to more failures among regional US Banks. The Federal Reserve recently raised interest rates by 25 basis points in its battle against inflation. Inflation in the US is still above 3%, higher than the Fed’s 2% annual target. US Federal Reserve Chair Jerome Powell said that the Fed is not confident that inflation is over.

Also Read: FED Raising Interest Rates by Another 25 Bps

Kevin O’Leary, aka Mr. Wonderful, compared the increase in rates to that of squeezing a tube of toothpaste. He stated that “You keep rolling it up, you keep raising rates, and you know things are going to break.”

O’Leary predicted that raising rates “will break down in the regional banks, which support 60% of the economy.” He further added that the rising cost of capital is “killing them on their real estate loans.”

Where does Kevin O’Leary think rate hikes will stop?

Kevin O’Leary
Source: Bitcoinnews

According to the renowned investor, “Terminal rate, where the Fed stops, could be 6.25, could be 6.50.” He further urges people to “think about this if you think about the long term and the short-term effect.”

O’Leary’s estimates are higher than the Fed’s current median end-of-2023 forecast of 5.6%, as of the June meeting. Moreover, O’Leary’s prediction is also higher than the most hawkish estimates of 6.1%. The figure is an estimate from the Fed’s latest summary of economic projections issued in June.

Also Read: U.S. Economy To Reach Hyperinflation if BRICS Becomes Global Currency

Although inflation in the US is cooling, it is still above the Fed’s target. The latest hike was the 11th rise in the 12 last meetings. Fed Chair Powell has said that there might be another round of rate hikes in September 2023.

Source link

Related posts

Why the rich want specialists

Why the rich want specialists

May 14, 2025
Top 5 African nations with the fastest-growing companies in 2025

Top 5 African nations with the fastest-growing companies in 2025

May 14, 2025
Previous Post

Victor Ekpuk is the new Artist In Residence At Efie Gallery

Next Post

Neighbor sues Dwight Howard after crashing into ex-NBA star’s cow in Georgia

Next Post
Neighbor sues Dwight Howard after crashing into ex-NBA star’s cow in Georgia

Neighbor sues Dwight Howard after crashing into ex-NBA star's cow in Georgia

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

California State Representative to Draft Pro-Bitcoin Legislation

California State Representative to Draft Pro-Bitcoin Legislation

4 months ago
ChatGPT May Be A Better Improviser Than You

ChatGPT May Be A Better Improviser Than You

2 years ago
Burger King Makes $300 Million Upgrade Investment

Burger King Makes $300 Million Upgrade Investment

1 year ago
A Few Long-Range Strikes by Ukraine Could Shift Tide of War: ISW

A Few Long-Range Strikes by Ukraine Could Shift Tide of War: ISW

8 months ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Matthew Slater, son of Jackson State great, happy to see HBCUs back at the forefront

    0 shares
    Share 0 Tweet 0
  • Dolly Varden Focuses on Adding Ounces the Remainder of 2023

    0 shares
    Share 0 Tweet 0
  • US Dollar Might Fall To 96-97 Range in March 2024

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.