Investment insights from Capital Group
SVB collapse has drastically altered interest rate expectations
Federal funds rate - actual vs. market-implied (%)
As at 5 April 2023. Fed funds target rate reflects the upper bound of the Federal Open Markets Committee’s (FOMC) target range for overnight lending among US banks. SVB: Silicon Valley Bank. Sources: Capital Group, Bloomberg Index Services Ltd., Refinitiv Datastream, US Federal Reserve
US banks tighten lending, raising recession risk
Net % of US banks tightening standards
As at 31 March 2023. Tightening standards based on the quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices. Sources: Board of Governors of the Federal Reserve System, Refinitiv Datastream
Inflation remains high globally as recession looms
Annual consumer price index (%)
Inflation rate as at 31 March 2023 for the United States, as at 28 February 2023 for other regions. Source: Refinitiv Datastream
U.S. Equities
Market Volatility
European Equity
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