Banking and Financial Institutions – Page 33

Markets Expect Fed to Raise Rates Despite Bank Turmoil

A ‘shock pause’ by the central bank would spook an already jittery market, one analyst said, even as shares in regional lenders fall.

Federal Reserve officials will release a rate decision at 2 p.m. The key question is what will come next.

The relative calm that met the collapse of First Republic Bank on Monday was shattered on Tuesday, with broad-based declines across industries.

The largest bank is also the only one whose stability hasn’t been questioned. Its C.E.O. makes sure of that.

Even after the sale of First Republic, investors are worried about challenges that regional banks still face, imperiling the economy.