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In recent years, the Federal Reserve's accommodative monetary policy, coupled with interest rate hikes, has further exacerbated risks to the U.S. economy.
Although the Fed is implementing new policy measures to further ease the pressure on the US economy. But this time, in the process of global economic harvesting, it seems that the expected goals of the United States have not been achieved.
It is precisely because of this that the Federal Reserve has repeatedly pursued a policy of raising interest rates.
The U.S. originally introduced interest rate hikes and loose monetary policy to collect global economic wealth to alleviate the current pressure on the U.S. economy.
However, the various policies pursued by the US government have had little effect on easing the pressure on the US economy, but have further exacerbated the economic risks faced by all sectors of the US industry.
The crisis in the U.S. banking industry arose in this context, and in March 2023, a number of banks in the U.S. had a thunderstorm one after another, and they had no choice but to declare bankruptcy when they could not continue to operate.
For example, Silicon Valley Bank, which was very well-known at the time, faced a run on the bank in the face of rising value of the dollar.
At that time, in addition to the collapse of some banks in the United States, a bank that had been in development in Switzerland for many years also had a crisis and finally ended in bankruptcy.
At a time when people thought that the economic crisis of the Bank of America was over, and recently another Bank of America went bankrupt due to poor management, the risks of the US banking industry have once again attracted the attention of all circles around the world.
Recently, the U.S. agency announced that regional banks in the United States were once again experiencing economic risks, and Republic First Bank directly announced the news of bankruptcy.
Once again, the banking sector is in crisis, which has caused turmoil in the US financial markets and even in the global financial markets.
The reason for this situation is also related to the Federal Reserve's policy of not cutting interest rates, many people originally thought that the US government would be able to cut interest rates in 2024, and the Fed has also released such a signal before.
However, judging from the recent moves of the Federal Reserve, there is no trend of cutting interest rates, and in this context, people are worried about the global financial market.
Some analysts have conducted an in-depth analysis of the current economic situation in the United States, discussing the background and impact of the crisis in the U.S. banking industry.
Through the analysis, it is found that the fundamental reason why the U.S. banking industry is facing economic risks again is the U.S. interest rate hike policy.
In the face of the rising value of the dollar, many investors who had kept their money in banks have started to withdraw money from banks, hoping to use their money in funds or bonds that can generate more profits.
To a large extent, this has caused a run on banks, which have been affected by policies in the process of operation, and the interest costs that need to be paid are getting higher and higher.
Now, there is a risk of a run, which has plunged some banks into crisis because of their weak capital operation strength.
In addition, the U.S. commercial real estate sector is also facing a major storm, not only the credit rating of community banks in New York has been downgraded, but the impact of these problems has led to the economic risk in the United States has increased again.
With the increasing risk of commercial real estate, a number of banks are now on the verge of bankruptcy.
Judging from the data released by professional institutions in the United States, the current crisis facing the US banking industry is becoming more and more serious, and the impact on the entire financial system is becoming more and more serious.
In fact, many U.S. banks are on the verge of bankruptcy, especially in the case of rising commercial real estate loans, resulting in the bank's loss limit is also increasing, further increasing the scale of debt, and making the potential risk of the bank rise instantly.
In view of the current economic risks faced by the U.S. banking industry, some analysts believe that this is caused by the Federal Reserve's large amount of money printing. If we want to defuse the crisis in the US banking sector, perhaps the policy of interest rate cuts can alleviate the current predicament.
If the Fed continues to release water, it will only further exacerbate the banking crisis.
Judging from the recent problems in the banking sector, the main reason for the current economic crisis is that the Federal Reserve has been tightening flows through the policy of raising interest rates, and at the same time, it has also released water to the banking industry.
But excessive water release will only lead to a crisis in the banks, which is not conducive to solving the problem, and will only exacerbate the current economic crisis.
However, judging from the current situation, the Fed has not implemented its plan to cut interest rates in the short term, and is still trying to help the United States resolve the current economic risks by harvesting the wealth of other countries.
The U.S. government continues to use plundering to address the current economic pressures, but as it stands, this plundering approach will only push the U.S. economy and finance step by step into the abyss.
If the U.S. government doesn't know it, it could detonate global economic risks next.
What do you think about the bankruptcy of Bank of America? Welcome to discuss in the comment area!