Shares of US banks fall hard after Federal Reserve rate hike

The shares of several US banks fell sharply in the after-trade on Wednesday. That is striking, because Federal Reserve Chairman Jerome Powell called the banking sector “solid” and “resilient” a few minutes earlier.

Now it appears once again that the banking crisis is probably not over yet. Bitcoin responds well to this and stands at a plus of 1.83 percent.

PacWest Bancorp falls 52.5 percent

Regional banks in particular are having a hard time in the United States at the moment. How about PacWest Bancorp, for example, which fell 52.5 percent in after-trade. That happened after it became known that the bank probably assets had to be sold to avoid further misery.

PacWest may just be the next bank to come to an end during this banking crisis.

share price banks america

There is a good chance that another large bank will decide to take over PacWest. Just like JPMorgan ended up being the one to take over First Republic.

Furthermore, Western Alliance Bancorp (22.4 percent), Metropolitan Bank (16.2 percent) and HomeStreet (7.8 percent) are banks that were hit hard in the after-trade. All in all, it is another painful session for the US banking sector, for which the crisis is certainly not over.

The credibility of the Federal Reserve

In any case, it will not be good for the credibility of the Federal Reserve that the banks collapsed less than two hours after Jerome Powell’s statements. On Twitter, Powell was therefore properly addressed for this.

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If this continues, last night’s interest rate hike could be very short-lived. If the chaos really breaks out, there is a chance that interest rates will fall again very quickly.

That would completely destroy the credibility of the Federal Reserve and possibly also cause a massive panic around the US dollar. In that respect, it is to be hoped for stability in the world that this remains the case.

On the other hand, all the unrest and misery is of course positive for Bitcoin, which has started today with a nice plus. In any case, these are exciting times at the moment.

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