Market Outlook: Continued banking sector turmoil, Fed at crossroads
Banking sector turmoil is continuing this week, but with more of a focus on our side of the Atlantic. On Sunday evening Credit Suisse, a Swiss bank, was acquired by its rival UBS. Also drawing attention will be the US Federal Reserve’s interest rate announcement this evening Swedish time. It will be especially interesting to see how the Fed views the problems of the banking sector, considering that inflation is still far too high. The US central bank faces a difficult balancing act, since the future rate hikes it has signalled as a way of slowing inflation pose a risk of worsening the situation of banks.