Moody’s Analytics chief economist Mark Zandi thinks the Federal Reserve is unlikely to raise interest rates at its March meeting as there is a “boatload of uncertainty” around the recent bank failures. The financial turmoil of the past few days will certainly affect monetary policy decision making when the Federal Open Market Committee meets next
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According to Moody’s, the downgrade and ratings reflect “the deterioration in the bank’s financial profile and the significant challenges it faces”. Adding that it is maintaining ratings under review for a downgrade as well. For some context, a drop from B2 to Baa1 is straight up putting the credit profile of First Republic Bank into
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