The US Federal Reserve raised its benchmark lending rate on Wednesday, as it sought to strike a balance between curbing high inflation and averting further upheaval in the commercial banking sector.

The quarter-point increase, which was in line with expectations, lifts the target range to 4.75-5.00 per cent at the end of a two-day policy meeting.

In a statement, the Fed said recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation."

The policy-setting Federal Open Market Committee (FOMC) added that "some additional policy firming may be appropriate" to get to a stance that is sufficiently restrictive to bring inflation down.

The latest increase was the same size as the central bank's previous rate decision in February.&nbsp;It comes after two weeks of market turmoil following the collapse of three regional lenders.

Wednesday's decision underscores the Fed's determination to tackle inflation, which remains stubbornly above policymakers' long-term annual target of two per cent despite an effort to lower price increases.

<h2>Hot data and banking uncertainty</h2>

The implosions of Silicon Valley Bank (SVB) and two other regional lenders pummelled banking stocks around the world last week, with Swiss investment bank Credit Suisse swallowed up by regional rival UBS after its shares sank to a record low.

Asian stock markets and most European indices rose ahead of the Fed's decision. Wall Street stocks picked up shortly after the Fed's announcement.

The combination of hot US economic data at the start of the year and uncertainty in the banking sector has led most analysts to predict the Fed will continue with a more modest hiking cycle than was previously expected.

"After the recent news, the recent developments in the financial markets, we now see a kind of risk to both sides," Stephen Juneau, senior US economist at Bank of America Global Research, told AFP ahead of the decision.

<h2>More 'dovish' language</h2>

Treasury Secretary Janet Yellen said Tuesday that the US banking sector was "stabilising" after authorities stepped in to protect deposits following the failures of SVB and Signature Bank.

But she conceded that "similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion."

Yellen's comments underscored this week's relief rally in the stock markets, along with actions by the Fed and other major central banks to improve lenders' access to liquidity.&nbsp;

On Wednesday, the Fed also updated its economic projections, slightly lowering its 2023 GDP growth projections 2023 to 0.4 per cent from 0.5 per cent in December.

Median projections for the Fed's benchmark rate at the end of this year were unchanged, while inflation expectations rose increased slightly.

The Fed's announcement follows on the heels of the European Central Bank's decision last week to raise rates by 0.5 percentage points.

ECB chief Christine Lagarde warned on Wednesday that the Eurozone's monetary policymakers "will still have ground to cover to make sure that inflation pressures are stamped out."&nbsp;

She said the recent banking turmoil could add to "downside risks" in the single currency area.

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The US Federal Reserve raised its benchmark lending rate on Wednesday, as it sought to strike a balance between curbing high inflation and averting further upheaval in the commercial banking sector.

The US Federal Reserve raised its benchmark lending rate on Wednesday, as it sought to strike a balance between curbing high inflation and averting further upheaval in the commercial banking sector. The quarter-point increase, which was in line with expectations, lifts the target range to 4.75-5.00 per cent at the end of a two-day policy meeting. In a statement, the Fed said recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation." The policy-setting Federal Open Market Committee (FOMC) added that "some additional policy firming may be appropriate" to get to a stance that is sufficiently restrictive to bring inflation down. The latest increase was the same size as the central bank's previous rate decision in February. It comes after two weeks of market turmoil following the collapse of three regional lenders. Wednesday's decision underscores the Fed's determination to tackle inflation, which remains stubbornly above policymakers' long-term annual target of two per cent despite an effort to lower price increases. Hot data and banking uncertainty The implosions of Silicon Valley Bank (SVB) and two other regional lenders pummelled banking stocks around the world last week, with Swiss investment bank Credit Suisse swallowed up by regional rival UBS after its shares sank to a record low. Asian stock markets and most European indices rose ahead of the Fed's decision. Wall Street stocks picked up shortly after the Fed's announcement. The combination of hot US economic data at the start of the year and uncertainty in the banking sector has led most analysts to predict the Fed will continue with a more modest hiking cycle than was previously expected. "After the recent news, the recent developments in the financial markets, we now see a kind of risk to both sides," Stephen Juneau, senior US economist at Bank of America Global Research, told AFP ahead of the decision. More 'dovish' language Treasury Secretary Janet Yellen said Tuesday that the US banking sector was "stabilising" after authorities stepped in to protect deposits following the failures of SVB and Signature Bank. But she conceded that "similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion." Yellen's comments underscored this week's relief rally in the stock markets, along with actions by the Fed and other major central banks to improve lenders' access to liquidity. On Wednesday, the Fed also updated its economic projections, slightly lowering its 2023 GDP growth projections 2023 to 0.4 per cent from 0.5 per cent in December. Median projections for the Fed's benchmark rate at the end of this year were unchanged, while inflation expectations rose increased slightly. The Fed's announcement follows on the heels of the European Central Bank's decision last week to raise rates by 0.5 percentage points. ECB chief Christine Lagarde warned on Wednesday that the Eurozone's monetary policymakers "will still have ground to cover to make sure that inflation pressures are stamped out." She said the recent banking turmoil could add to "downside risks" in the single currency area. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US Fed delivers 25 points rate hike amid global banking turmoil

A Lebanese man who took a bank hostage in order to access his own money is being hailed as a hero by the public in Beirut.

Bassam al-Sheikh Hussein, a 42-year-old food-delivery driver, stormed the Federal Bank branch in the capital to withdraw a part of his frozen savings of $210,000 to help pay for his father’s hospital bill.

According to AFP news agency, he entered the bank with a rifle, poured petrol and demanded his money. Following a seven-hour stand-off, he was arrested and taken out of the bank, with no injury being reported.

LBC TV channel reported that the armed man surrendered after he was allowed to take $35,000 of his savings upfront.

Dozens of protesters gathered outside the bank during the stand-off and chanted, "You are a hero."

The hostage taker represents the anger of a wider public whose savings accounts have been frozen for over three years due to the economic crisis. Banks have allowed depositors only token withdrawals of dollars each month that are insufficient to meet the most basic of needs.

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<a href="https://twitter.com/hashtag/Lebanon?src=hash&amp;ref_src=twsrc%5Etfw">#Lebanon</a>: A man has taken as many as 10 people hostage in a Beirut bank today after he was denied the ability to withdraw savings to pay his father’s medical bills. The man, named Bassam al-Sheikh Hussein, reportedly was denied access to $210,000. <a href="https://t.co/7f0EkEPm72">https://t.co/7f0EkEPm72</a> <a href="https://t.co/omqfZDucki">pic.twitter.com/omqfZDucki</a>
— POPULAR FRONT (@PopularFront_) <a href="https://twitter.com/PopularFront_/status/1557753421784141825?ref_src=twsrc%5Etfw">August 11, 2022</a></blockquote>
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Mariam Chehadi, Hussein’s wife, who was standing outside, told reporters that her husband “did what he had to do,”&nbsp;reports AP news agency.

Hussein’s brother Atef, also standing outside the bank, defended his brother. “My brother is not a scoundrel. He is a decent man. He takes what he has from his own pocket to give to others.”

Notably, this was the second incident of bank siege reported this year. In January, another angry depositor doused customers in a regional bank with fuel and demanded his savings. He too was successful.

The country is in the midst of one of the world's most severe economic crises. Apart from the cost-of-living crisis and shortages of wheat and medicines, Lebanon's local currency has lost more than 90 per cent of its value since 2019.

According to UN, around four-fifths of the population is living in poverty.

(With inputs from agencies)

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A Lebanese man who took a bank hostage in order to access his own money is being hailed as a hero by the public in Beirut. Bassam al-Sheikh Hussein, a 42-year-old food-delivery driver, stormed the Federal Bank branch in the capital to withdraw a part of his frozen savings of $210,000 to help pay for his father’s hospital bill.

A Lebanese man who took a bank hostage in order to access his own money is being hailed as a hero by the public in Beirut. Bassam al-Sheikh Hussein, a 42-year-old food-delivery driver, stormed the Federal Bank branch in the capital to withdraw a part of his frozen savings of $210,000 to help pay for his father’s hospital bill. According to AFP news agency, he entered the bank with a rifle, poured petrol and demanded his money. Following a seven-hour stand-off, he was arrested and taken out of the bank, with no injury being reported. LBC TV channel reported that the armed man surrendered after he was allowed to take $35,000 of his savings upfront. Dozens of protesters gathered outside the bank during the stand-off and chanted, "You are a hero." The hostage taker represents the anger of a wider public whose savings accounts have been frozen for over three years due to the economic crisis. Banks have allowed depositors only token withdrawals of dollars each month that are insufficient to meet the most basic of needs. #Lebanon: A man has taken as many as 10 people hostage in a Beirut bank today after he was denied the ability to withdraw savings to pay his father’s medical bills. The man, named Bassam al-Sheikh Hussein, reportedly was denied access to $210,000. https://t.co/7f0EkEPm72 pic.twitter.com/omqfZDucki — POPULAR FRONT (@PopularFront_) August 11, 2022 × Mariam Chehadi, Hussein’s wife, who was standing outside, told reporters that her husband “did what he had to do,” reports AP news agency. Hussein’s brother Atef, also standing outside the bank, defended his brother. “My brother is not a scoundrel. He is a decent man. He takes what he has from his own pocket to give to others.” Notably, this was the second incident of bank siege reported this year. In January, another angry depositor doused customers in a regional bank with fuel and demanded his savings. He too was successful. The country is in the midst of one of the world's most severe economic crises. Apart from the cost-of-living crisis and shortages of wheat and medicines, Lebanon's local currency has lost more than 90 per cent of its value since 2019. According to UN, around four-fifths of the population is living in poverty. (With inputs from agencies) WATCH WION LIVE HERE

Armed man who held bank staff hostage to withdraw savings becomes hero in Lebanon

Due to the United States Federal Reserve raising its key rate by three-quarters of a point this week in a bid to tame high inflation the average long-term U.S. mortgage rates had their biggest one-week jump in 35 years, climbing from 5.23% last week to 5.78% this week, the highest its been since November of 2008 during the housing crisis.&nbsp;

Wednesday’s rate hike by the Fed was its biggest in a single action since 1994. The US central bank raised the benchmark borrowing rate on Wednesday by 0.75 percentage points, bigger than the telegraphed half-point increase after economic data in recent days showed inflation strengthening and consumer confidence weakening.

Mortgage buyer Freddie Mac reported on Thursday that the brisk jump in rates, along with a sharp increase in home prices, has been pushing potential homebuyers out of the market.

Also Read:&nbsp;<a href="https://www.wionews.com/world/unhappy-bill-mcdonalds-to-pay-more-than-usd-1-billion-to-avoid-tax-evasion-case-488748">Unhappy bill: McDonald's to pay more than USD 1 billion to avoid tax evasion case</a>

Mortgage applications are down more than 15% from last year and refinancings are down more than 70%, according to the Mortgage Bankers Association. Those figures are likely to worsen with more Fed rate increases a near certainty.

Higher borrowing rates appear to be slowing the housing market. Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates increased, driving up borrowing costs for buyers as home prices soared.

Homeownership has become invariably difficult nowadays, especially for first-time buyers. Besides high inflation, rising mortgage rates and increasing home prices, the supply of homes for sale continues to be limited.&nbsp; 
&nbsp;

(with inputs from agencies) 
&nbsp;

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Due to the United States Federal Reserve raising its key rate by three-quarters of a point this week in a bid to tame high inflation the average long-term U.S. mortgage rates had their biggest one-week jump in 35 years, climbing from 5.

Due to the United States Federal Reserve raising its key rate by three-quarters of a point this week in a bid to tame high inflation the average long-term U.S. mortgage rates had their biggest one-week jump in 35 years, climbing from 5.23% last week to 5.78% this week, the highest its been since November of 2008 during the housing crisis. Wednesday’s rate hike by the Fed was its biggest in a single action since 1994. The US central bank raised the benchmark borrowing rate on Wednesday by 0.75 percentage points, bigger than the telegraphed half-point increase after economic data in recent days showed inflation strengthening and consumer confidence weakening. Mortgage buyer Freddie Mac reported on Thursday that the brisk jump in rates, along with a sharp increase in home prices, has been pushing potential homebuyers out of the market. Also Read: Unhappy bill: McDonald's to pay more than USD 1 billion to avoid tax evasion case Mortgage applications are down more than 15% from last year and refinancings are down more than 70%, according to the Mortgage Bankers Association. Those figures are likely to worsen with more Fed rate increases a near certainty. Higher borrowing rates appear to be slowing the housing market. Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates increased, driving up borrowing costs for buyers as home prices soared. Homeownership has become invariably difficult nowadays, especially for first-time buyers. Besides high inflation, rising mortgage rates and increasing home prices, the supply of homes for sale continues to be limited. (with inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Long-term US mortgage rates show biggest one-week jump in 35 years after Fed’s rate hike

Federal Bank on Saturday said it has committed to investing Rs 300 crore in beleaguered Yes Bank for the subscription of its 30 crore shares.

"The Bank has issued an Equity commitment Letter to invest Rs 300 crore in YES Bank Ltd for the subscription of 30 crore equity shares of Yes Bank at a price of Rs 10 per equity share," a regulatory filing said.

Also Read: <a href="https://www.wionews.com/india-news/sbi-will-take-49-stake-in-yes-bank-cabinet-has-approved-restructuring-sitharaman-286178">SBI will take 49% stake in Yes Bank, cabinet has approved restructuring: Sitharaman</a>

According to the statement, this equity commitment is pursuant to the scheme of reconstruction of Yes Bank proposed by the Reserve Bank of India and subject to regulatory approvals and other conditions as set out in the Letter.

The Union Cabinet on Friday approved a reconstruction plan proposed by the RBI for bailing out fund-starved Yes Bank.

The authorised capital of Yes Bank has been increased to Rs 6,200 crore, Union minister Nirmala Sitharaman said on Friday.

Under the plan, state-run SBI will infuse Rs 7,250 crore in the crisis-ridden private bank and take 49 per cent equity.

Also Read: <a href="https://www.wionews.com/india-news/yes-bank-scam-cbi-carries-out-searches-at-7-locations-285222">Yes Bank scam: CBI carries out searches at 7 locations</a>

Private lender ICICI Bank also announced investing Rs 1,000 crore for equity in excess of 5 per cent. HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore to purchase 60 crore shares in the bank.

There will be a three year lock-in period for all the investors. However, the lock-in period for SBI would be only 26 per cent of shareholding. It would be 75 per cent in the case of other investors.

The government has notified the Yes Bank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on March 18.

Federal Bank on Saturday said it has committed to investing Rs 300 crore in beleaguered Yes Bank for the subscription of its 30 crore shares. "The Bank has issued an Equity commitment Letter to invest Rs 300 crore in YES Bank Ltd for the subscription of 30 crore equity shares of Yes Bank at a price of Rs 10 per equity share," a regulatory filing said.

Federal Bank on Saturday said it has committed to investing Rs 300 crore in beleaguered Yes Bank for the subscription of its 30 crore shares. "The Bank has issued an Equity commitment Letter to invest Rs 300 crore in YES Bank Ltd for the subscription of 30 crore equity shares of Yes Bank at a price of Rs 10 per equity share," a regulatory filing said. Also Read: SBI will take 49% stake in Yes Bank, cabinet has approved restructuring: Sitharaman According to the statement, this equity commitment is pursuant to the scheme of reconstruction of Yes Bank proposed by the Reserve Bank of India and subject to regulatory approvals and other conditions as set out in the Letter. The Union Cabinet on Friday approved a reconstruction plan proposed by the RBI for bailing out fund-starved Yes Bank. The authorised capital of Yes Bank has been increased to Rs 6,200 crore, Union minister Nirmala Sitharaman said on Friday. Under the plan, state-run SBI will infuse Rs 7,250 crore in the crisis-ridden private bank and take 49 per cent equity. Also Read: Yes Bank scam: CBI carries out searches at 7 locations Private lender ICICI Bank also announced investing Rs 1,000 crore for equity in excess of 5 per cent. HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore to purchase 60 crore shares in the bank. There will be a three year lock-in period for all the investors. However, the lock-in period for SBI would be only 26 per cent of shareholding. It would be 75 per cent in the case of other investors. The government has notified the Yes Bank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on March 18.

Federal Bank to invest Rs 300 crore in Yes Bank

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US Fed delivers 25 points rate hike amid global banking turmoil

Armed man who held bank staff hostage to withdraw savings becomes hero in Lebanon

Long-term US mortgage rates show biggest one-week jump in 35 years after Fed’s rate hike

Federal Bank to invest Rs 300 crore in Yes Bank