Iran's Currency Collapse Sparks Nationwide Protests
Iran's currency is rapidly deteriorating, leading to a severe economic crisis characterized by inflation and financial instability.
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Financial Instability
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Russia's Economic Struggles Intensify Amid Rouble Collapse
The collapse of the Russian rouble highlights significant underlying issues within the country's economy, raising concerns about financial stability and the effectiveness of current economic policies.
Gold price outlook revised up due to Fed's instability and potential rate cuts.
MKS PAMP has revised its gold and silver price projections for 2023, citing the recent failures of Silicon Valley Bank and Signature Bank as evidence that the Federal Reserve has broken something vital during its fastest tightening pace in decades. The firm predicts that gold prices will print new all-time highs this year, with silver overdue a strong upside repricing once/if investors resubscribe. The Fed will have to choose between higher inflation, a harder landing or financial instability, and all outcomes will keep safe havens in play. Other reasons for the revised price forecasts include rising geopolitical tensions, the negative outlook for U.S. stocks, and the global de-dollarization trend.
Financial Instability and Mispriced Fed Rate Policy: Wells Fargo and Bridgewater CIO Weigh In
Wells Fargo Securities' Michael Schumacher suggests that financial instability is a bigger economic risk than inflation for the next three months, and that policymakers are underestimating how quickly tightening credit conditions could hurt the economy. Schumacher believes that the Fed will hold interest rates higher for longer as long as the financial sector can avoid another meltdown, and predicts that the Fed will probably hike rates one more time.
First Republic Bank Considers Sale and Receives Support from Big Banks and Financial Institutions.
First Republic Bank, one of the nation's larger institutions, is exploring options to shore up its finances and calm jittery investors, including a possible sale to a larger rival or a financial rescue that could include a quick injection of new cash. The bank's shares have plunged 60% since last Thursday, and its credit rating has been downgraded to junk levels. Deposit withdrawals have also increased, with roughly two-thirds of First Republic's deposits above the federally insured limit of $250,000.