![]() ![]() commercial and industrial lending, according to Ann Miletti, head of active equity at Allspring Global Investments. Smaller and regional banks account for about 50% of U.S. The banking industry remains under pressure, even after the federal government acted quickly to provide support. High rates have already helped cause three high-profile failures in the U.S. He likened it to slowing from 75 miles per hour on a highway to 50 and then even slower as the destination nears. “Given how far we’ve come, it may make sense to move rates higher but to do so at a more moderate pace,” he said in testimony before a House of Representatives committee. Some analysts say the rally ran too far, too fast while inflation has remained stubbornly high, which could force the Fed to keep rates higher for longer.įed Chair Jerome Powell said Wednesday that “the process of getting inflation back down to 2% has a long way to go.” He said again that a couple more rate increases may be on the way, though the speed of the hikes is likely to slow after moving at a furious speed since early last year. That would take pressure off the economy and could allow it to avoid a recession. Wall Street had been on a tear this year, with the S&P 500 up nearly 14% amid hopes that inflation is coming down quickly enough for the Federal Reserve to stop hiking interest rates soon. Still, roughly as many stocks rose as fell on Wall Street, and the Dow Jones Industrial Average dropped by a milder 0.3%, to 33,951.52. ![]() Weakness for high-growth stocks hit the Nasdaq composite in particular, and it lost 1.2% to 13,502.20. ![]()
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