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FE D chair Powell gave the MPC speech on 23 March 23'. Here are some crucial points from his speech: On recent events:      >>>  T here are some serious difficulties, however, with a small number of banks       >>>  History is evident that if such events are un-attended, they may have contagion to healthy parts of the financial system as well       >>>  Hence, the FED working with Treasury and FDIC to strengthen confidence in the banking system      >>>  Together, these institutions have created a “bank term funding program” that works alongside the discount window. This would allow banks to get access to the required liquidity  Monetary Policy:        >>>  Fed funds rate risen by 25bps       >>>  Inflation remains high and the labour market remains tight       >>>  US growth in the previous year had been below the long-term trend       >>>  Consumer spending appears to have picked up this quarter, however, it

Summarizing the paper ( click here ) titled “ Banks’ Credit and Investment Dynamics: Assessing Portfolio Rebalancing and Crowding-out ” under the Reserve Bank of India Working Paper Series. *  The Paper is authored by Sanjay Singh, Garima Wahi and Muneesh Kapur. Click here to read my summary The paper analyses the asset portfolio dynamics of Indian banks and the impact of their investment in G-secs on their profitability. The empirical analysis indicates that weak economic conditions and stressed asset quality encourage banks to increase their investments in government securities suggesting a portfolio rebalancing channel. Higher investment by banks in government securities in the face of higher government borrowings indicates the operation of a crowding-out channel. Its impact can be mitigated to an extent by the central bank’s market operations. The crowding-out is lower for banks with better asset quality and higher capital adequacy. An increase in the share of government securiti