Source: US marshalling ‘material action’ to stem SVB fallout – Reuters
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US authorities were preparing “material action” on Sunday to shore up deposits in Silicon Valley Bank (SVB) and try to stem any broader financial fallout from the sudden collapse of the tech startup-focused lender, mentioned Reuters while relying on anonymous sources familiar with the matter.
Elsewhere, Bloomberg also cites people familiar with the matter to mention that the US Federal Reserve is considering easing the terms for banks to access its discount window to prevent another collapse similar to Silicon Valley Bank.
Further, Mint reports that the US Federal Reserve will hold a closed-door emergency meeting on Monday of the Board of Governors amid the fallout of the Silicon Valley Bank. The news also adds, “According to a statement released by Fed it will review and determine the advance and discount rates to be charged by the Federal Reserve Banks during the meeting.”
The SVB fallout shocked global markets and propelled risk-off mood on Friday, drowning the US Treasury bond yields and weighing on the US Dollar. Hence, any positive development on the front can help the US Dollar to regain its upside bias.
Also read: Forex Today: DXY ends week flat after Powell and NFP, ahead of US CPI; Wall Street plunges
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