Fed's interest rate hikes losing potency

As expected, the US Federal Reserve decided last week to raise the target range for the federal funds rate by a quarter of a percentage point to 4.75 percent-5 percent, while continuing to sharply reduce its holdings of securities.

Since the collapse of Silicon Valley Bank and Signature Bank, there has been a lot of noise in the market that the Fed may slow the pace of its rate hikes.

However, it should be seen that while some banks face unusual capital needs, there is still ample liquidity in the system and the health and safety of the banking system of the United States is not in question.