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Interest rates

Banks in Turmoil

How the Fed's rate hikes spelled trouble for banks like SVB

by Sabri Ben-Achour
Mar 21, 2023
Why bonds lose value when the Fed hikes interest rates and what that has to do with banks.
Silicon Valley Bank was among the financial institutions for which rising interest rates on bonds spelled trouble.
Patrick T. Fallon/AFP via Getty Images
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Silicon Valley Bank Collapse

What is "duration risk"? (And how did it get Silicon Valley Bank into trouble?)

by Lily Jamali
Mar 16, 2023
Investing in long-term government bonds and mortgage-backed securities hurt the bank as interest rates rose and bond prices plummeted.
Some bonds are more sensitive to interest rates than others, depending on how long they take to mature. That “duration risk” hurt SVB financially.
Noah Berger/AFP via Getty Images
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Banks in Turmoil

Mortgage rates dip following bank collapse

by Lily Jamali
Mar 15, 2023
The last few days have been particularly unstable for mortgage rates, which were already volatile amid recent interest rate hikes.
Mortgage rates took a dive after the closure of Silicon Valley Bank and Signature Bank, marking a period of volatility tied to people's unease about the financial sector.
Joe Raedle/Getty Images
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Who still wants a "trophy building"?

by Matt Levin
Mar 10, 2023
The market for skyscrapers with great views and lush amenities is softening.
Office spaces with amenities like rooftop terraces and kombucha on tap may be on the chopping block for companies trying to rein in costs.
Ludovic Marin/AFP via Getty Images
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When it comes to inflation, monetary policy might not be getting the job done

by Kai Ryssdal and Sean McHenry
Mar 9, 2023
"It's clear there have been some shifts in the economy that just make their policies less effective," says Neil Irwin of Axios.
On Tuesday, Federal Reserve Chair Jerome Powell appeared before the Senate Banking Committee.
Win McNamee/Getty Images
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Buckle up for a big economics week in Washington

by Nancy Marshall-Genzer
Mar 6, 2023
Fed Chair Jerome Powell testifies on Capitol Hill tomorrow and Wednesday. President Biden is set to release a budget outline on Thursday, and we get February jobs numbers this Friday.
Above, Federal Reserve Chair Jerome Powell testifies to Congress in June. He's slated to appear before lawmakers again this week to discuss the central bank's activities and a range of economic issues.
Win McNamee/Getty Images
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Businesses and consumers are borrowing more, despite rising interest rates

by Justin Ho
Mar 1, 2023
Total loan balances rose from last quarter and year over year, according to the FDIC. There are good reasons to borrow now.
Some consumers are opting to use home equity loans to pay off credit card debt.
Damien Meyer/AFP via Getty Images
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Credit card debt is rising. Again.

by Samantha Fields
Feb 20, 2023
Card debt, which fell during the pandemic, is at a record $986 billion, according to the New York Fed. Delinquencies are rising too.
Though expanding credit card debt may represent a return to normal, the "pre-pandemic normal ought to concern Americans," says Aaron Klein at the Brookings Institution.
Franko Lee/AFP via Getty Images
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Initial public offerings fell sharply last year. Are things looking up?

by Kristin Schwab
Feb 10, 2023
The number of companies debuting IPOs in 2022 hit its lowest level in years. Just 181 companies went public then compared to over 1,000 in 2021. Experts say this year looks a little brighter.
When confidence wanes, "the IPO window narrows or shuts for a period of time," said Gregory Rice at Boston Consulting Group. Above, the New York Stock exchange.
Ramin Talaie/Getty Images
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Consumers seem pretty happy with their own finances. But they're worried about the economy.

by Mitchell Hartman
Feb 10, 2023
Higher interest rates and inflation still spark anxiety. But wages have grown, and some have a greater feeling of financial security.
Despite the burden of inflation, some consumers still feel upbeat about their personal economies.
Luis Robayo/AFP via Getty Images
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