Over 1,600 Financial Firms Tapped Fed's Emergency Lending Tool
More than 1,600 banks and their subsidiaries tapped the Federal Reserve's emergency lending program created to support the industry during the regional banking turmoil two years ago.
Beal Bank USA and First Republic Bank took out the biggest loans through the Bank Term Funding Program, which was established in March 2023 to bolster liquidity within the financial system after the collapse of Silicon Valley Bank. At their peak, they each borrowed loans in excess of $8 billion from the Fed, according to data released from the Fed on Wednesday.
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Here's what the Israel-Iran conflict could mean for the economy
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Lennar earnings, retail sales, Fed meeting: What to Watch
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Tariffs will impact inflation in a 'steady drip,' not a surge
Tariff effects may take years to fully show up in inflation data. John Leer, chief economist at Morning Consult, joins Catalysts to explain why businesses are passing on costs slowly and what that means for consumer prices and hiring. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. The May Consumer Price Index is set to be released on Wednesday. Core year of year inflation expected to come in at 2.9%, and core prices expected to tick up three tenths of a percent higher for the month. Investors expecting the Fed to hold rates steady in the June meeting as inflation remains stubbornly above its 2% target. For more, I want to bring in John Leer, he's Morning Consults Chief economist, on what to expect from this week's data. Great to have you on here, John. Talk to me about what you're anticipating ahead of that key CPI print this week. Yeah, thanks for having me. Well, I think, as you mentioned, I expect to see inflation remain stubbornly high. I still don't think we're going to fully see the impact of, uh, tariffs on inflation. I imagine that will be spread out over the course of the full year with some of it actually backloaded towards the end of the year as businesses increasingly face pressures to pass on, uh, elevated costs. But I think the real question from this particular report is going to be how concentrated are those tariff related, tariff-induced, uh, cost increases. Uh, my expectation is that it will remain fairly muted, uh, through the month of May. So when do we finally see it? I keep feeling like sources are telling me, oh, we can ignore this data, we can ignore this data, we don't have the tariffs in place yet. When can I finally say, okay, guys, we can't ignore it anymore? We see something, I think pretty different relative to the consensus. We run a quarterly survey with the Federal Reserve Bank of Boston, and it showed that, uh, small businesses, at least, expect to spend, um, roughly two years passing on the full cost of tariffs to their customers. And so my expectation is actually that we will see sort of a steady drip of price increases rather than this one-off, uh, surge. Due likely to the sort of competitive dynamics in the US economy, it doesn't benefit any company to be the first one out to increase costs when, in fact, the tariff policy might, might change underneath you. And so we really need to see more stable policy announcements, and that, I think, will lead to, uh, a pretty, uh, gradual but protracted period of cost increases. Yeah, and similarly, what are you hearing from those small businesses about the employment picture going forward? Our read is that employment actually has not, uh, pulled back. I think what we see is that the rate of hiring has slowed, um, but it's been slowing at a, on a trajectory sort of consistent with where we were prior to the tariffs. So it doesn't look to us like tariff induced, uh, we've seen tariff induced hiring pullback or hiring slowdown. And that's really counter again to the narrative that existed, let's say a few months ago where everyone expected tariff uncertainty to drive and pull back an investment and then even potentially, uh, uh, elevated layoffs. We simply don't see that. I think small businesses and consumers out there as well, what they're seeing is that the, the, the world remains fairly uncertain. It still is in the financial interest of companies to keep workers on their payrolls when there's so much demand, um, to benefit from. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
