April 4, 2023
United States:
Jamie Dimon Warns US Banking Crisis Will Be Felt for Years
Silicon Valley Bank’s blunders were encouraged by US regulation, went untested by the Federal Reserve and were “hiding in plain sight” until Wall Street and depositors grew alarmed.
That’s JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon’s assessment of the US banking crisis that sent markets careening last month, an episode he predicts is “not yet over” and will be felt for years. He said US authorities shouldn’t “overreact” with more rules.
Europe:
British Pound Leads European Currency Rebound
The pound rose to the highest since June against the dollar as traders bet resilience in the UK economy may give the Bank of England room to keep lifting interest rates.
Sterling rose as much as 0.9% to $1.2521 on Tuesday, taking its year-to-date advance past 3%, the best among the Group-of-10 currencies. The move came alongside broader weakness in the dollar in the face of evidence that the Federal Reserve’s tightening cycle is beginning to bite in the US economy.
Asia:
BOJ Should Review Yield Curve Control Under Ueda, Ex-Finance Official Says
The Bank of Japan should review its yield curve control program under its incoming governor, a former top finance ministry official said ahead of the central bank’s first leadership change in a decade.
The ongoing monetary easing has caused side effects including distortions in the bond market, a drop in the currency and a weakening of fiscal discipline, according to Takehiko Nakao, a former Vice Minister for International Affairs. He stressed the need for the policy tweak while also noting that such a move will also come with risks.
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