Fed Rate Hike Raises Costs of Funding Global Commerce
What's happening
The Federal Reserve raised the target federal funds rate by 25 basis points to a 3.75% to 4.00% range, the first rate increase in three years. The Fed also raised the interest rate paid on reserve balances to 3.90% from 3.65%, effective Thursday. The move was unanimous and cited persistent elevated inflation, and industry coverage says the hike raises the costs of funding global commerce.
Why it's trending
Higher US policy rates and a higher IORB immediately make bank funding costlier and ripple into global trade finance and cross-border payments demand now.
SignalNewly emerging, confirmed across 2 independent source types.
Story volume
Stories per dayAngles you could write
Think the Fed hike just slows inflation? For fintechs, a 25bp lift to 3.75%-4.00% and IORB at 3.90% is an opportunity to reprice deposits and widen margins, if you act faster than banks.
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Original sources3
- Fed Rate Hike Raises Costs of Funding Global Commerce
The Federal Reserve on Wednesday (Sept. 16) raised the target range for the federal funds rate by a quarter percentage point to 3.75% to 4%, saying inflation remains elevated. In its accompanying implementation decision, the Fed raised the interest rate paid on reserve balances to 3.90% from 3.65%, effective Thursday. For banks, the decision reaches […] The post Fed Rate Hike Raises Costs of
PYMNTSSep 17 - Fed Raises Rates for First Time in Three YearsHackerNewsSep 16
- FOMC raises rates for first time in three years
The Federal Open Market Committee announced it would raise the target range for the federal funds rate by 25 basis points to 3.75% to 4%. The vote was unanimous. The post FOMC raises rates for first time in three years appeared first on ABA Banking Journal .
ABA Banking JournalSep 16
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