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Wednesday, March 4, 2026

Brace for more banking shocks with the Fed in a ‘twilight zone’ where it can’t tame inflation without threatening financial stability, Fidelity warns

There may be further turmoil ahead for the US’s embattled banking sector, as the Federal Reserve is forced to pick between curbing inflation and ensuring financial stability, according to Fidelity Investments. The asset-management titan said earlier this month that the Fed is trapped in a “twilight …

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