Bank situation is 'actually disinflationary' -adviser

Reuters Videos
1 年前

STORY: "So that may play into the Fed's ability to pause [rate hikes], in the short run," Ledoux explained.

Ledoux does not see any risk to the Fed's credibility if it does pause rate hikes, "because they have said they are going to be data-dependent, and this situation with the banks is data that they should be considering."

Investors are awaiting the outcome of the Fed's two-monetary policy meeting on Wednesday.

Markets are pricing in a 25 basis-point increase, down from previous expectations for a 50 bps increase.

But some investors believe there may be no increase at all.