The value of the US housing market reaches an all-time high of $47 trillion, driven by a scarcity in inventory that is propelling a surge in prices.

Regional bank stocks have surged recently, but corresponding issues with their bonds are causing concern. Moody's downgraded credit ratings for 10 out of 27 banks and raised concerns about rising deposit costs and risks to loans due to remote work.

Prepare for the Next Wave of Inflation Figures

Surging Oil Prices Pose Inflation Risk and Economic Dilemma for Federal Reserve

Investors wager on prolonged high rates.

The stock market's extra advantage over bonds is at a 20-year low, causing concerns about the sustainability of the rally. The shrinking equity-risk premium is attributed to investors' optimism about the economy and a possible normalization of risk premiums if bond yields fall.

Encouraging signs in consumer spending, capital investment, and employment growth suggest the economy may continue to grow in the current quarter, reducing the risk of an imminent recession. However, the impact of recent Fed rate increases remains a potential headwind.

The possibility of a soft landing achieved by the Federal Reserve suggests the economy could continue growing for four to five more years. Historical patterns indicate that economic expansions don't simply die of old age; the Fed's actions play a significant role.

The Federal Reserve raised interest rates by a quarter-percentage point, reaching a 22-year high. Fed Chair Jerome Powell stated that further rate increases would depend on economic performance, especially progress on inflation. Markets had mixed reactions.

Officials are concerned about inflation and wage growth, uncertain whether it will slow enough without an economic downturn. Some fear inflation may persist, requiring higher interest rates.

Regional banks are cutting back on lending and selling low-yielding assets to improve earnings. This pleases investors in the short term, but it may lead to reduced loans for customers like auto and home buyers. It could also slow down banks' income growth in the future.

Federal Reserve's July meeting may raise rates by a quarter-point, but the real debate is on conditions for future hikes. Inflation slowdown raises doubts about the need for more increases.

June's Inflation Rises Only 0.2%, Below Expectations, Providing Relief to Consumers

The Federal Reserve has chosen to keep interest rates the same for now. This decision lets them take time to better understand how it will impact future financial plans. However, their future predictions or "dot plot" show that they expect interest rates to increase to 5.6%

Federal Reserve Chair, Jerome Powell, has announced uncertainty about future U.S. interest rate hikes due to the impact of past increases, tightening of bank credit, and difficult inflation control.

The April inflation report, indicating easing price pressures, supports the Fed's pause in rate hikes, with Chair Jerome Powell suggesting they might have achieved their goal of economic slowdown; a summer break from hikes is anticipated.

Fed raises interest rates to a 16-year high, signaling a potential pause. The decision aims to combat inflation and impacts mortgages, credit cards, and business loans. Stocks retreat and bond yields fall, while Fed officials monitor the economy for further moves.

New Biden rule makes good-credit homebuyers pay more to subsidize high-risk loans. Critics argue it's confusing and poorly timed for a struggling housing market

Jamie Dimon declares "crisis over" after JPMorgan Chase acquires First Republic. Regional banks' downfall resolved, but investors should watch for risks tied to Fed rate hikes.

PacWest stocks plunge 28% amid regional bank crisis. The third major bank failure this year fuels sector-wide decline. Wall Street cautiously optimistic, but long-term profit outlook for mid-sized regional banks uncertain. Fed rate hikes could add to challenges