US money-market funds just saw their assets drop for the first time since early March, snapping a trend of record inflows.
It’s also the biggest such fall since July 2020 as US taxpayers were due to file their taxes in the past week, according to Bloomberg.
Money-market funds saw large inflows in recent months as high yields and the banking jitters fueled a flight of money into them.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
US money-market funds just saw their first outflows since early March, snapping a multi-week trend of record inflows that was driven by depositors migrating cash out of banks amid the sector’s worst turmoil since 2008.
The total assets managed by such funds fell by $68.64 billion to $5.21 trillion in the week through April 19, according to data published by the Investment Company Institute. That’s the first decline since the March 10 collapse of Silicon Valley Bank (SVB) triggered a wave of banking instability.
It’s also the biggest one-week drop since July 2020, per Bloomberg, as US taxpayers were due to file their levies in the past week.
In the weeks following SVB’s collapse, money-market funds saw accelerated inflows, with their total assets hitting a record high of $5.28 trillion as of April 12, per the ICI.
That reflected a trend of depositors – worried about the safety of their savings – pulling money from smaller, more vulnerable banks and parking it elsewhere.
But money-market funds had been raking in cash even before the banking turmoil thanks to the high yields they offered, following the Federal Reserve’s interest-rate increases over the past year.
One reason why such funds have seen a decline in recent days are the tax bills due this week, Bloomberg reported. When the pandemic was raging in 2020, the US Internal Revenue Service had delayed that year’s filing deadline from April to July to give American taxpayers more time.
Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
The average savings account offers 0.39% Annual Percentage Yield (APY), according to the FDIC. However, several banks and credit unions pay much more than the average right now.
Popular savings account options
Perhaps, you’ll see the highest rates at banks with unfamiliar names. If you’re searching for a bank with a national presence or you’re cautious about banks since Silicon Valley Bank failed, remember that up to $250,000 per depositor is safe in a federally insured bank even if it is shut down. Popular savings options from national brands can offer good rates, too. Here are some that offer competitive rates:
Best savings rates today
These accounts currently have the highest rates right now:
Best CD rates today
Best checking account rates today
Best money market account rates today
Today, the best financial institution for earning a competitive interest rate on an online high-yield savings account is UFB Direct, which pays 4.81% APY on UFB Premier Savings.
National brick-and-mortar banks typically pay lower interest rates on traditional savings accounts. For example, Bank of America pays 0.01% to 0.04% APY on the Bank of America Advantage Savings Account. If you’d like to earn a more competitive interest rate at a national brick-and-mortar bank, you’ll probably have to consider a premium savings account or money market account.
We’ve been checking over two dozen financial institutions to keep up with their new rate offerings. Our best savings accounts and best high-yield savings accounts guides can also be great starting points in your research — but if you prioritize finding the highest rates above all else, this list is for you.
Below, you’ll find some of the best high-interest savings accounts, CDs, high-yield checking accounts, and money market accounts available. All of these bank accounts have FDIC insurance, and the credit unions are NCUA-insured.
Best interest rates for savings accounts
UFB Premier Savings
Why it stands out: UFB Premier Savings comes with a complimentary ATM card, so you’ll have easy access to your bank account.
Savings rate: 4.81% APY
What to look out for: Customers with existing savings accounts may have to call customer service to get upgraded for the newest rate.
UFB Direct only offers a high-yield savings account and a money market account. If you would also like to open a checking account or CD with the same institution, another bank may be a better fit.
Primis Savings
Why it stands out: Primis Savings is a straightforward savings account with a competitive interest rate. There’s no monthly service fees, no minimum balance requirements, and a $1 minimum opening deposit.
Savings rate: 4.77% APY
What to look out for: Primis Savings is only available online. If you would like to open a savings account at a Primis Bank branch, there are comparable accounts offered.
CIT Bank Platinum Savings
Why it stands out: CIT Bank Platinum Savings might be a solid choice if you maintain a high account balance. You’ll be able to earn 4.75% APY on balances of $5,000 or more.
Savings rate: 0.25% to 4.75% APY
What to look out for: You’ll only earn 0.25% APY if you have less than $5,000 in your account.
Best interest rates for CDs
Premier Members Credit Union Share Certificate
Why it stands out: Premier Members Credit Union may be a solid option if you prefer credit unions over banks and meet the eligibility requirements to become a member. The credit union is offering a limited-time 10-month share certificate that pays 5.25% APY. Once the 10-month certificate matures, it will automatically renew to a 6-month regular share certificate.
Rate: The rates for Premier Members Credit Union share certificates are as follows:
6 months: 2.50% APY
10 months (limited-time offer): 5.25% APY
12 months: 3.00% APY
18 months: 3.00% APY
2 years: 3.00% APY
3 years: 3.00% APY
4 years: 3.00% APY
5 years: 3.00% APY
What to look out for: The easiest way to become a member of the credit union is probably by joining Impact on Education, a charity of the Boulder Valley School District. You can also become a member if you or a family member live or work in an eligible Colorado County (Adams, Arapahoe, Broomfield, Boulder, Delta, Denver, Douglas, Elbert, El Paso, Garfield, Jefferson, Larimer, Mesa, Montrose, Pueblo, or Weld are all eligible); are a student, faculty member, or staff member in either the Boulder Valley School District or Westminster Public Schools; are an employee or family member of an employee of Ball Corporation, Boulder Community Health, IBM, Lexmark, or Medtronic; or are an employee or member of one of 750 organizations the credit union serves.
Air Force Federal Credit Union Certificate Account
Why it stands out: Air Force Federal Credit Union could be a good choice for CDs if you meet any the requirements for membership. The credit union’s most competitive CD is its 3-year term.
Rate: The rates for Air Force Federal Credit Union Certificates depend on how you deposit. You’ll earn a higher interest rate when you open an account with $100,000.
6 months: 4.00 to 4.25% to APY
12 months: 4.75% to 5.00% APY
18 months: 5.05% to 5.25% APY
2 years: 5.15% to 5.35% APY
3 years: 4.00% to 4.25% APY
5 years: 3.50% to 3.75% APY
7 years: 3.30% APY
What to look out for: To open accounts at Air Force Federal Credit Union, you’ll have to meet certain membership requirements. You may be eligible if you or a family member: live, work, or go to school in select areas in Texas or Mississippi; are an active duty member or veteran of the US Armed Forces or National Guard living in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi; or you make a $10 donation to the Dream Education Foundation or $25 to the Airman Heritage Foundation.
BrioDirect High-Yield CD
Why it stands out: BrioDirect has a competitive interest rate on its promotional 1-year CD. Its CDs also have a low minimum opening deposit of $500.
Rates: The rates for BrioDirect High-Yield CDs are as follows:
30 days: 0.05% APY
3 months: 0.25% APY
5 months: 0.15% APY
9 months: 0.30% APY
Promo 12 months: 5.25% APY
18 months: 1.35% APY
2 years: 2.30% APY
30 months: 0.45% APY
3 years: 2.45% APY
4 years: 0.45% APY
5 years: 0.45% APY
What to look out for: BrioDirect currently isn’t offering a high-yield savings account, checking account, or money market account. You’ll only be able to get CDs.
Crescent Bank CD
Why it stands out: Crescent Bank has online CDs with great interest rates.
You may deposit money into the CD by mailing a check or transferring money from a bank account at another financial institution.
Rate: The rates for Crescent Bank CDs are as follows:
12 months: 5.15% APY
18 months: 5.10% APY
2 years: 5.10% APY
30 months: 4.55% APY
3 years: 4.55% APY
4 years: 4.55% APY
5 years: 4.50% APY
What to look out for: To open a Crescent Bank CD, you’ll need to deposit at least $1,000 in new money. New money means funds that haven’t already been deposited into a Crescent Bank account.
Synchrony CD
Why it stands out: Synchrony has 14-month and 18-month CDs with competitive interest rates. You also might like Synchrony if you want to open a CD with a low initial deposit — the online bank lets you open an account with $0.
Rate: The rates for Synchrony CDs are as follows:
3 months: 2.25% APY
6 months: 4.25% APY
9 months: 4.30% APY
12 months: 4.75% APY
13 months: 4.50% APY
14 months: 5.15% APY
15 months: 4.50% APY
16 months: 4.50% APY
18 months: 5.00% APY
19 months: 4.50% APY
2 years: 4.30% APY
3 years: 4.30% APY
4 years: 4.00% APY
5 years: 4.00% APY
What to look out for: You’ll want to consider whether you have a preference on how you’ll withdraw money from a CD. When you’re ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.
Best interest rates for checking
Consumers Credit Union Free Rewards Checking Account
Why it stands out: The Consumers Credit Union Free Rewards Checking Account doesn’t charge monthly service fees. If you qualify for a tiered rate, you’ll also be eligible to get early direct deposit and unlimited ATM fee reimbursements.
You’ll get the most out of the account if you do the following:
Earn 3.00% APY if you have $10,000 or less when you sign up to receive eDocuments, make 12 monthly debit card purchases, and receive $500 in monthly direct deposits, mobile check deposits, or transfers from other banks
Earn 4.00% APY if you meet the requirements to earn 3.00% APY and spend $500 per month with your Consumers Credit Union Credit Card
Earn 5.00% APY if you meet the requirements to earn 3.00% APY and spend $1,000 per month with your Consumers Credit Card
Earn 0.20% APY if you have an account balance between $10,000.01 and $25,000 when you receive eDocuments, make 12 monthly transactions, and receive $500 per month in direct deposits, mobile check deposits, or transfers from other banks
Earn 0.10% APY if you have an account balance over $25,000 when you receive eDocuments, make 12 monthly transactions, and receive $500 per month in direct deposits, mobile check deposits, or transfers from other banks
If you don’t meet the requirements, you’ll only earn 0.10% APY on your account balance.
Rate: 0.01% to 5.00% APY
What to look out for: Credit unions require membership to open accounts. To become a member, pay a one-time membership fee and open the Consumers Credit Union Membership Share Savings Account with at least $5.
Juno Metal Checking Account
Why it stands out: Juno has a solid rewards checking account. The rate you’ll earn will vary depending on your account balance. You can earn up to a 5% yearly bonus on the first $25,000 in your account, and 4% on balances from $25,0001 to $250,000. You’ll also be able to earn 5% cash back when you shop at select retailers, and buy and sell cryptocurrency through Juno.
Rate: 4.00% to 5.00% APY
What to look out for: Juno has two types of accounts: Basic and Metal. The main difference between the two accounts is that the Juno Metal Checking Account has higher limits for yearly cash back, crypto purchases, and other perks than Juno Basic Checking Account.
To qualify for Metal, you’ll need to maintain a qualifying direct deposit of $250 or more per month or connect your Web3 Wallet so Juno can review your on-chain activity.
Primis Premium Checking
Why it stands out: Similar to the Primis Savings Account, Primis Premium Checking offers a competitive interest rate and low minimum opening deposit. This checking account may also be a good option if you are looking for a checking account that has early direct deposit.
Rate: 4.77% APY
What to look out for: Primis ATMs are primarily located near Primis branches. If you don’t live in Maryland or Virginia, you’ll have to use out-of-network ATMs. Primis doesn’t charge ATM fees and will provide reimbursements if you’re charged by an out-of-network ATM provider. That said, you may have to wait until the business day your statement cycle ends to receive your ATM reimbursements.
Another thing to keep in mind is that Primis Premium Checking is only available online. If you would like to open a checking account at a Primis Bank branch, there are comparable accounts offered.
Best interest rates for money market accounts
CFG Bank High Yield Money Market Account
Why it stands out: CFG Bank offers a high interest rate on a money market account. You may like the CFG Bank High Yield Money Market Account if you regularly maintain at least $1,000 in your account. That way, you’ll earn 5.02% APY and waive the monthly fee.
Rate: 5.02% APY
What to look out for: Usually money market accounts come with an ATM card, debit card, or paper checks. However, the CFG Bank High Yield Money Market Account doesn’t have these options. If you’d like to withdraw money from your account, you’ll have to make a transfer to another account.
UFB Preferred Money Market Account
Why it stands out: You may like the UFB Preferred Money Market Account if you would like a money market account that includes paper checks and a debit card.
You’ll earn a high interest rate on the account, but there’s a $10 monthly service fee if you don’t maintain an account balance of at least $5,000.
Rate: 4.81% APY
What to look out for: If you don’t think you can maintain at least $5,000 in your account to avoid the monthly service fee, there are other banks that have lower minimum balance requirements or no monthly service fees.
Keep in mind that UFB Direct only offers a high-yield savings account and a money market account. If you would also like to open a checking account or CD with the same institution, another bank may be a better fit.
How to balance a high APY vs. brand in an uncertain banking environment
Silicon Valley Bank was one of the largest banks in the US, and it was shut down in March. Earning a high APY on a savings account or CD seems great, but how important is a high rate when your bank could fail?
If a bank is insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000 is safe per depositor in a savings, checking, CD, and money market account. This means that if you have a joint account, $500,000 is safe. The same is true for credit unions, which are insured by the National Credit Union Administration (NCUA). If your bank failed, your money with either move into another insured institution, or you would receive a check for the money that was in your accounts.
The national brands on our list, such as Capital One and Discover, are FDIC-insured. The smaller brands, like CFG and Crescent Bank, are also insured. Federal insurance matters more than the actual bank brand.
Evelyn He is a Compliance Associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love. The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries. Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 4-year-old Bichon named Tibber.
Given that Crow is a prolific megadonor to GOP campaigns and causes, several prominent GOP politicians have attended high-dollar fundraisers at his home over the years — and have seen his collection for themselves.
“He has an extensive historical museum that examines World War Two,” said Sen. Ted Cruz, who’s been to “multiple” fundraisers at Crow’s home. The Texas senator argued that the media is “deliberately” mischaracterizing the nature of Crow’s collection in order to tarnish Clarence’s reputation.
“I’m not gonna comment on his collection tastes,” said Sen. Mitt Romney of Utah, who attended a fundraiser at Crow’s home in 2012. “I don’t imagine, in any way, that Harlan Crow has any feelings of support for Hitler. That would be, in my opinion, absurd.”
His backyard includes a so-called “Garden of Evil,” including busts and statues of infamous dictators ranging from Joseph Stalin and Vladimir Lenin to Fidel Castro and Josip Tito.
“He collects memorabilia on fallen dictators as a reminder of how all these dictators ended up dead,” said Sen. Marco Rubio of Florida, who attended a fundraiser at Crow’s house in 2015 and benefited from $350,000 in outside spending by Crow in support of his 2016 presidential campaign. “It’s a reminder that dictatorship doesn’t work.”
Harlan Crow in his private library at his Dallas residence on October 2, 2015.
Chris Goodney/Bloomberg via Getty Images
“He doesn’t have those statues because he supports Communists, any more than the World War Two memorabilia that he has is because he somehow supports Nazis,” said Cruz. “Rather, he is remembering and commemorating horrific periods in our nation’s history and evil regimes that perpetrated grotesque human rights abuses.”
“I have no idea; his library is an extensive museum,” said Cruz. “So I’ve seen — there are display cases all over the place of all sorts of things.”
‘He’s not a drug dealer or cocaine trafficker’
Crow also collects other historical artifacts, including thousands of documents, books, and historical artifacts pertaining to American history. Understandably, those collections haven’t raised nearly as many questions among the public.
The Texas billionaire recently defended his collecting habits in an interview with the Dallas Morning News, criticizing “yellow journalism” for insinuating that he “[likes] some of that stuff.”
“My mom was on a ship that was sunk by Germans during World War II,” said Crow. “If you try to kill my mom, I don’t like you. I mean, that’s reasonably obvious. And so the idea that I could have sympathy for Nazism is insane.”
Sen. Mitt Romney of Utah, who said on Monday that Crow’s financial entanglement with Thomas “stinks,” offered high praise for the Texas billionaire, who in 2012 donated $150,000 to a pro-Romney super PAC and held a fundraiser for Romney when he was the party’s 2012 presidential nominee.
“I think Harlan Crow’s a terrific person,” said Romney, who acknowledged that he had “walked through” the Texas billionaire’s home. “I respect him and appreciated his support, and believe his voice in conservative circles is welcome.”
Rubio argued that it’s “not true” that Crow has a collection of Nazi memorabilia, decrying a “society and political culture that angles anything they can.”
“Harlan Crow’s a patriotic guy,” said the Florida senator. “He’s not a drug dealer or cocaine trafficker; he’s a guy who’s made his money honestly in real estate and been a supporter of many great causes.”
Republican Sen. Joni Ernst of Iowa, whose campaign has received $11,000 from Crow since 2014, said it’s “possible” that she’s been to Crow’s home but that she wasn’t sure.
But when asked about Crow’s Nazi memorabilia and dictator sculptures, Ernst said she had “no idea” about it.
“I would’ve most certainly remembered that,” she said.
Billionaire investor Howard Marks sounded the alarm on the commercial real-estate sector.
The Oaktree Capital co-founder warned of mortgage defaults that could add stress to the US financial system.
“We’re very likely to see mortgage defaults in the headlines, and at a minimum, this may spook lenders,” Marks said.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
Billionaire investor Howard Marks rang the alarm on commercial real estate in what he labels as “one of the biggest worries” US banks face today.
In a Monday memo, the Oaktree Capital Management co-founder warned of a wave of mortgage defaults that could add stress to the US banking sector.
“We’re very likely to see mortgage defaults in the headlines, and at a minimum, this may spook lenders, throw sand into the gears of the financing and refinancing processes, and further contribute to a sense of heightened risk,” Marks said.
“Developments along these lines certainly have the potential to add to whatever additional distress materializes in the months ahead,” he added.
The commercial real-estate market has become investors’ newest concern thanks to higher interest rates, tighter lending standards – part of the fallout from the turmoil that hit banks in March – and work-from-home trends. That’s a problem for smaller and mid-sized US banks which have high commercial property exposure.
High borrowing costs and tighter credit conditions caused by the banking jitters could raise hurdles for big property owners as they seek to refinance a pile of loans. Nearly $450 billion in commercial real-estate debt is due to mature in 2023 – meaning a final payment on those loans are due, per data cited from Trepp by JPMorgan.
“Higher interest rates call for higher demanded capitalization rates (the ratio of a property’s net operating income to its price), which will cause most real estate prices to fall,” Marks said. “The possibility of a recession bodes ill for rental rates and occupancy, and thus for landlords’ income,” he added.
Marks however stressed that he’s not sure if banks will suffer losses on their commercial property loans, or what the magnitude will be.
“Mortgage defaults generally don’t signal the end of the story, but rather the beginning of negotiations between lenders and landlords. In many cases, the result is likely to be extension of the loan on restructured terms,” he said.
Exit the stock rally now as the S&P 500 index could tumble about 22%, according to the chief market strategist at FS Investments.
The benchmark index is up about 8% so far in 2023 on hopes the Federal Reserve will soon end interest-rate increases.
“This is a golden opportunity to use this bear market rally to de-risk in advance of potentially very painful losses over the next six, nine, 12 months,” Troy Gayeski said.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
The stock market is heading for a sharp setback that could see the S&P 500 plunge about 22% over the coming quarters, according to the chief market strategist at FS Investments.
That means investors shouldn’t wait anymore to cash out on this year’s rally in equities, and should start selling their holdings now, Troy Gayeski said during a recent episode of the “What Goes Up” podcast hosted by Bloomberg. “There’s no reason to wait. It’s not like you’re going to leave 10% upside on the table,” he said.
“First of all, the strongest rallies have always been in bear markets,” Gayeski continued.
“Usually they’re driven by technical factors. And then there’s a narrative that’s put together to justify it: the more recent one was that inflation’s going to slow enough that the Fed won’t have to hike anymore, and then we’re going to have a recession and somehow that’s going to cause the Fed to cut rapidly. But recessions aren’t bad for revenue or earnings? It really makes very little sense,” he added.
So far this year, the S&P 500 has advanced about 8%, largely driven by investor hopes that the Federal Reserve will ease up on its tight monetary policy – which is aimed at taming inflation – as it deals with turmoil in the US banking industry.
But like Gayeski, market experts including Jeremy Grantham and Morgan Stanley’s top stock picker Mike Wilson don’t expect the rally to last long. Wilson has warned the S&P 500 is set to tank over 20% later this year due to a looming earnings recession and the fallout from the banking tremors, per Bloomberg.
“We’ve always thought that this bear market would be meaningfully worse than the 2018 correction or some of the shocks we had in the post-Great Financial Crisis period, but not as bad as we had from 2002 and also the financial crisis,” Gayeski said.
“This is a golden opportunity to use this bear market rally to de-risk in advance of potentially very painful losses over the next six, nine, 12 months,” he added.
Hi, I’m Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Today’s Sunday edition, a roundup of some of our top stories.
On the agenda today:
But first: JPMorgan is asking senior managers to be in the office five days a week. I break down the latest on RTO mandates below.
If this was forwarded to you, sign up here. Download Insider’s app here.
This week’s dispatch
Mario Tama/Getty
Construction is currently underway on JPMorgan’s new corporate headquarters in midtown Manhattan, so it should come as no surprise that the bank is planning on having bums on seats to fill it. The company told senior managers this week that they “have to be visible on the floor” in a memo asking managing directors to be in the office five days a week.
The memo also echoed other recent edicts that focus on the importance of IRL interactions in career development.
Killing off projects had become something of a tradition at Kittyhawk, the secretive flying-car startup launched by Larry Page. But when the Google cofounder decided to get more hands-on, what followed was a series of bizarre experiments, ostensibly intended to save the company.
A dozen former Kittyhawk employees told Insider that Kittyhawk found itself torn between the conflicting visions and shifting priorities of its billionaire founder and his handpicked CEO. In the end, the internal chaos proved unsustainable.
For millions of Americans, the past few years have redefined their relationship to money. Gen Z and millennials, in particular, have seen the critical years of their financial lives defined by the shifting sands of the pandemic economy.
Experts say the financial scars of the pandemic era run deep. And as overlapping crises only intensify in the next few decades, the behaviors young people develop around money will stick around.
Each decade brings some turning point in technology that lures college students to a new field — and right now, artificial intelligence is all the rage. Students and recent grads are embracing AI, with many hoping to be an early employee at the next big tech giant.
We spoke with a dozen professors, students, and industry professionals about how companies are raiding college campuses to mine for talent, offering six-figure salaries and unimaginable resources. “The student population is getting cleaned out,” one dean from Cornell said.
A wave of revolutionary weight-loss drugs, which includes the buzzy Ozempic, represents a watershed moment for obesity treatment. But high costs, insurance hurdles, and a surge in demand are keeping the drugs from getting to many of the people who need them.
Doctor offices are overwhelmed by patients asking for the drugs for cosmetic reasons. Celebrities and influencers are raising the drugs’ profile even further. But people who need the treatment the most are stuck in the middle.
A ban would be a blow to the company’s bottom line: Used by more than 150 million users in the US, TikTok is expected to generate $8 billion in advertising revenue by 2024 from Americans alone, according to Insider Intelligence, and the company’s US business, alone, could be worth between $40 and $50 billion, per Bloomberg.
In turn, Zhang Yiming, the CEO of TikTok’s Chinese parent company ByteDance, may see his net worth — which sits at $42.3 billion as of April 14 — drop. He is one of many Chinese billionaires who got rich from starting successful tech giants.
The banking fiasco will help the Federal Reserve curb inflation, the IMF’s managing director says.
“The skirmishes in the banking sector are actually helpful,” Kristalina Georgieva said Thursday.
The turmoil will cause a tightening of credit conditions that slows price growth, she added.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
There is no banking crisis – and unease in the sector will help the Federal Reserve to cool inflation, the head of the International Monetary Fund says.
Kristalina Georgieva said Thursday that last month’s turmoil will aid the Fed in its war on soaring prices by leading to a tightening of credit conditions, as mid-sized banks try to shore up their balance sheets by raising their lending standards.
“The skirmishes in the banking sector are actually helpful because they do lead to medium-sized banks being more careful in their lending practices,” the IMF managing director told CNBC’s “Squawk on the Street.”
“They provide 30% to 40% of financing, meaning they are helping the Fed by being more prudent for the Fed not to have to do that much,” she continued. “It has been a helping hand to the Fed.”
Inflation tends to cool when credit conditions tighten. Consumers and businesses find it harder to access cash, which leads to lower levels of spending and investment — key components of overall demand in the economy and drivers of price growth.
The California lender ran into trouble after it sold long-dated bonds at a loss and moved to raise fresh capital. The scramble for cash spooked its customers, resulting in a tidal wave of withdrawals that overwhelmed the bank and spurred the Federal Deposit Insurance Corporation to seize control and guarantee all of its deposits.
But Georgieva said she didn’t view last month’s fiasco as a crisis. Some turmoil was to be expected after the Fed hiked borrowing costs from near-zero to around 5% in the space of a year in a bid to tame soaring inflation, she said.
“I don’t think there is a banking crisis, there are vulnerabilities that we should have expected,” she told CNBC.
“Let me say that we have lived through a long period of very low interest rates and ample liquidity and very quickly we moved into high interest rates and restrictive liquidity,” Georgieva added. “Of course there would be vulnerabilities to be exposed.”
The IMF isn’t the first high-profile institution to predict the banking turmoil will lead to lenders pulling back on financing. However, other market forecasters have underscored the impact a credit crunch would have on economic growth, rather than inflation.
Allianz said late last month that the US is now “headed towards a crash landing,” with SVB’s collapse heralding a credit crunch that could plunge the economy into a severe recession.
Hanna Matyiku-Nuñez was laid off from her job as a marketing manager at a small tech firm in 2021.
She developed resentment toward her tech colleagues who got laid off from bigger companies.
Matyiku-Nuñez realized she needed to be open and vulnerable to get through her layoff.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
In November 2021, I found myself arriving early to the tech-layoff boom. I was laid off from my marketing position at a small startup most people had never heard of. I was also eight weeks into a six-month maternity leave.
If you lost your job at a major tech company, you could blame the narcissistic CEO. Plus, many of your “safe” former coworkers would share your name and résumé with their networks, describing you as the smartest, the best, a person anyone would be lucky to have. In my mind, this meant the enviable perks of working for a tech giant continued even after a layoff.
People who were laid off from Big Tech companies had their stories shared broadly on LinkedIn, and they were added to special lists — and networking groups. I thought I coveted the brand notoriety, but in hindsight, it was the visibility I wanted.
To become more visible during my layoff, I needed to be more transparent. I now realize my resentment came from a deep desire to be real during the hardest moment of my career.
It’s a challenge to authentically exist in the corporate world
In my early 20s, I changed the way I dressed. I also adopted a more direct writing style in emails, then later started adding emojis and exclamation marks so I didn’t come across as too harsh. I even subconsciously altered my voice to adopt a deeper tone so no one could accuse me of upspeak — think more Kourtney Kardashian than Elizabeth Holmes — and I didn’t realize my voice had changed until my mom pointed it out one Christmas.
It’s taken years for me to dismantle these behaviors. I realized the people I admired and gravitated to brought their authentic selves to work. I wanted to be one of them, but to be real, I had to break down my work persona — and eventually, I did.
I started talking more like myself instead of relying on corporate jargon. In meetings, I forced myself to ask questions when I didn’t understand something. And, hardest of all, I allowed for moments of vulnerability when balancing life and work became too hard.
Now, years into my career and newly laid off, I wanted to rebuild my work persona so no one would see that I lost my job for reasons outside my control. I wished for everything to be in the open, but I hated the idea of making a formal announcement on Linkedin.
Eventually,I used my network, much like the laid-off workers from larger companies
I gave myself until March 2022, when my severance ended, to attempt to exist like I was on my planned maternity leave. Then, four months after getting laid off, I started looking for a job. I thought my network wouldn’t help me make any new connections, but I was wrong. I’d spent months processing my layoff and focusing on my newborn. So when it came time to start looking for jobs, I was ready to open up a little.
I applied to dozens of jobs via career portals. The only response I received was the automatic email reply after submission. I quickly turned to former managers, colleagues, and friends, asking them for referrals to all the major tech companies. The executive team that laid me off scheduled calls, made introductions, and supported me in my job search.
My severance ended at the end of March and I was working in a new role by June. It was the very executive who delivered the news of my layoff who introduced me to a recruiter at the company I now work for.
The truth is, during layoffs, everyone is faced with their own new reality — and it’s terrifying
When I was laid off, my days were spent applying for jobs or thinking about how I should be applying for jobs. But, rather than joining the conversation and openly talking about my situation, I turned inward. Later, I dehumanized people in the same situation I was in because they were more open about their own layoffs.
I pictured their journeys as a straight shot from A to B because they came from bigger companies. I thought they weren’t struggling to start conversations with their network or struggling to be seen in a pool of applicants. In my mind, they went from sharing the news of their layoff to starting a new job with no mess in between.
I now realize the shame of being laid off kept me from being open, and later drove me to layoff resentment. Zooming out, my situation was relatively comfortable. I had a generous severance, a partner with an income that could support our family, and no fear my joblessness would affect my immigration status. But what I didn’t have was the peace that can only come with being open.
It’s a hard time to be in tech. It seems everyone has experienced a layoff, has survived one, or lives in dread about what could be, but it was only through openness and vulnerability that I got through my own layoff.
The Wagner Group will exhaust itself in Bakhmut within two months, a Ukrainian commander said.
That’s if it doesn’t change its “human wave” tactics first, according to Col. Serhiy Cherevaty.
The mercenary group has reportedly been forced to draw from its elite troops in recent weeks.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
The commander of Ukraine’s eastern forces said that time is running out on the Wagner Group’s ability to keep up its “human wave” assaults on Bakhmut.
Col. Serhiy Cherevaty told Ukrainian TV on Tuesday that “with the current intensity of them being annihilated, unless they change their tactics, I think we’re talking two months,” according to a translation by The New Voice of Ukraine.
The outlet noted that this was Cherevaty’s personal opinion.
“Being a terrorist organization, they [Wagner] use coercion methods,” Cherevaty added, saying that its troops fight “under threat of execution.”
The intense, months-long battle in Bakhmut, which has been fought on the Russian side primarily by the private military group, has been described as a “meat grinder.”
In March, the Institute for the Study of War think tank said that Wagner had been forced to start drawing from its elite fighters due to what it described as “massive losses” among the ill-equipped, poorly trained convicts the group initially threw into the battle.
But Russia has, in recent weeks, been able to make “very, very slow progress,” in Bakhmut, Western officials said at a briefing last Wednesday, per CNN.
Even so, there are conflicting claims as to the extent of Russian control of the city.
Wagner’s founder Yevgeny Prigozhin said on Tuesday that his troops held more than 80% of the city, including factories and its administrative center, according to Ukraine’s Channel 24.
Prigozhin also said on April 3 that his troops had “legally” captured the city, as they had managed to hoist a flag from an administrative building, NBC News reported.
Cherevaty pushed back on Prigozhin’s claim. “I can confidently state that the Ukrainian defense forces control a much larger percentage of the territory of Bakhmut,” the Ukrainian commander told CNN, without specifying a figure.
