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Moody’s Chief Economist Mark Zandi said that the Federal Reserve does not prioritize the stability of the US banking system and this puts the economy at risk.

In an interview with CNBC Thursday, March 23, he estimated that the tightest credit conditions since the SVB collapse equated to two or three interest rate increases of 25 basis points, though the central bank raised benchmark interest rates by another 25 basis points at its policy meeting Wednesday. March 22.

“This puts the effective Fed rate closer to 6%,” Zandi warned, “and he believes that this is a very large increase in interest rates and that it puts the economy at risk.

The Fed funds rate is now officially on target between 4.75-5%, after the central bank actually raised interest rates by 1700% over the past year in order to control inflation.

But this caused huge losses in the banks’ bond portfolios, leading to the failure of the SVB and putting other regional banks under pressure from depositors seeking safety in larger lenders.

Zandi also believes that Fed officials should have held interest rates at their last monetary policy meeting, in order to consider the full effects of the banking crisis on the economy.

“The first priority should be to stabilize the banking system, and of course they haven’t done that, and I think they’re taking a risk here,” he said.

It seems that the difficult period that Nvidia went through during the past year has passed, with the company’s market value increasing by more than $ 200 billion since the beginning of 2023.

After two years of prosperity, the chip company lost half of its value, or $300 billion, in 2022 amid fears of an economic recession, which affected purchases of technology products.

And these circumstances caused the company to be ousted from the list of the 20 largest companies in terms of value in the world.

The company acknowledged that these circumstances caused the accumulation of large levels of stocks, as it had large quantities of the graphics processing unit, amid declining demand from users, especially game developers.

In one session… Nvidia’s value recovered by $75 billion

But things witnessed a huge shift in 2023. Since the beginning of the year, the company’s shares have risen by about 62%, or about $230 billion in value.

In just one session – yesterday’s Thursday session – the company’s market value increased by $ 75 billion, after it revealed the results of its business for the last quarter of 2022.

Artificial intelligence is the key to Nvidia’s big wins, especially ChatGPT, which is revolutionizing the world of Internet search.

Experts predict that Nvidia will become among the biggest winners in the era of artificial intelligence because the company designs the necessary graphics processing unit for artificial intelligence applications.

And Microsoft this week sealed a 10-year deal that makes Call of Duty and other Activision games available on Nvidia’s gaming platform.

Matthias Cormann, Secretary General of the Organization for Economic Co-operation and Development, stated that the outlook for the global economy is slightly better this year, but inflation challenges remain.

In statements to CNBC, Korman said that with the beginning of 2023, expectations for the performance of the global economy are better than they were two or three months ago.

And the Secretary of the Organization added before the upcoming meeting of financial leaders within the Group of 20: In fact, energy and food prices are much lower than they were at their peak. Energy is what has kept gas prices low.

Corman continued: The global economy is expected to grow much less than pre-war expectations, by about 3.1% in 2022 and 2.2% in 2023, before recovering slightly to 2.7% in 2024.

On inflation, Korman stressed that its risks remain and need to be managed well.

And he continued: Inflation is starting to decline, but more work needs to be done to address inflation, which carries risks, and there will be a need to continue to manage those risks well for weeks and months.

Central banks, led by the Federal Reserve, have tended over the past year to raise rates to curb soaring inflation.