The figure for the last week of March shows an increase of around US$4 billion compared to the previous one.
Deposits in commercial banks in the United States increased at the end of March for the first time in about a monthshowing stabilization signals after the two eldest bank failures since the financial crisis have shaken the banking system and unsettled depositors.
The data of the Federal Reserve published last Friday showed that deposits in all commercial banks increased to $17.35 trillion in the week ending March 29, on a seasonally adjusted basis, from $17.31 trillion in the prior week.
American dollars
(Photo: Freepik)
The data that causes fears of recession in the US
According to one Fed technical researchhe short term bond spreaddata that arises from the comparison of the profitability of the Treasury debt within 18 months with the return of a three-month title, It is the most reliable signal on the market regarding the possibility of a economic contraction.
In that same sense, the Fed Chairman Jerome Powellsaid last year that US Treasury yield curve at 18 months it was the most reliable warning of a coming recession.
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This week, that spread, which has been in negative numbers since November, fell hard and scored new lows this weekbeing located in almost -170 basis points last Thursday.
This causes them to appear fears of a possible recession. Investors fear that the turbulence in the banking system caused by the Silicon Valley Bank bankruptcy in March tighten credit conditions and hurt growth.
The Fed, which embarked on one of its most aggressive rate hike cycles in decades to beat inflation last year, estimated that borrowing costs will remain around current levels until the end of 2023. However, The investors point to that tighter monetary policy is already starting to hurt growth and they are betting on rate cuts by the end of this year.
Source: Ambito
