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close video US economy faces very dire situation if Fed cant keep rates high: Mike Lee

A ‘Word on Wall Street’ panel with Michael Lee Strategy’s Mike Lee, Strategic Wealth Partners’ Mark Tepper, Bulltick Capital’s Kathryn Rooney Vera discuss market trends amid banking collapse volatility.

While some of America’s top banking CEOs discuss a new rescue plan and the Federal Reserve kicks off its two-day meeting, one market expert has warned of a "very dire situation" dependent on fiscal policy. 

"If the Fed can't keep rates high, if they can't keep raising as they need be, and we have persistently high inflation, we are in a very, very, very, very dire situation," Michael Lee Strategy founder Mike Lee said on "Mornings with Maria" Tuesday.

"So I think the Fed goes 25 basis points. I think how the market reacts depends 100% on what Powell says and reacts to the questions and how the market absorbs that," he continued. "But what I see is not so much as a contagion from banks or some sort of massive solvency crisis, it's what do we do if the Fed can't raise any more, can't keep tightening? It has to ease, so there's no systemic shocks from the banking system."

With a strong market rally underway Tuesday morning, the Fed began discussing its latest interest rate decision. Sixty-two percent of investors expect the policymakers to continue hiking rates, which would mark the ninth straight increase, while 38% expect no change, according to CME's FedWatch.

BANK TURMOIL COULD BRING ‘VICIOUS’ END TO BEAR MARKET, MORGAN STANLEY SAYS

While the Fed under Chairman Jerome Powell has embarked on its most aggressive rate hike path since the 1980s to combat stubbornly high inflation, a recent report written by U.S. economists indicates if history is destined to repeat itself, then the Fed will "find it hard" to avoid a recession later this year.

The Federal Reserve could bring the U.S. economy into a “very dire situation,” Michael Lee Strategy founder Mike Lee said on “Mornings with Maria” Tuesday. (Fox News)

The central bank is also navigating bank-run contagion fears this week, after the recent insolvencies of Silicon Valley Bank and Signature Bank, and potentially First Republic Bank.

Lee signaled the banking and rate hike dilemmas are ones of "confidence," as opposed to structural issues. Image 1 of 4

Markets often react when Federal Reserve Chairman Jerome Powell speaks or announces a rate hike decision. | AP Newsroom

"No matter how good the banking laws are, no matter how good the oversight is, no matter how strong your balance sheet is, nobody can withstand a 20 to 25% deposit base withdrawal in a single day, as happened with Silicon Valley Bank," Lee explained. close video The Fed to meet this week to decide possible rate hike

Mercatus Center distinguished fellow Thomas Hoenig discusses how the Fed’s plan for inflation, argues it has been running poorly for years on The Bottom Line.

"So I think the upshot of what just happened is lending standards are most likely going to increase, further slowing the economy," he added.

Also joining the "Word on Wall Street" panel, Bulltick Capital’s chief market strategist Kathryn Rooney Vera agreed with Lee that the Fed will likely raise rates by 25 basis points Wednesday.

"It has to hike 25 basis points. It has a dual mandate, 2% inflation and full employment, it has to comply with that. If they do not hike this week, tomorrow, this is going to be a huge additional shock to credibility and they're very focused on that," Rooney Vera said. "So they have to recoup credibility. If they do not hike 25, I think it will be poorly received by the markets."

GET FOX BUSINESS ON THE GO BY CLICKING HERE close video US will see 25 basis point hike from the Federal Reserve: Michael Kantrowitz

Piper Sandler chief investment strategist Michael Kantrowitz provides insight on the Federal Reserve’s response to record-high inflation on ‘Making Money.’

Michael Wilson, the chief U.S. equity strategist at Morgan Stanley and a longtime Wall Street bear, said in an analyst note on Monday that the stock market is in the early and painful stages of exiting the bear market than began in the summer.

"The last part of the bear can be vicious and highly correlated," he said. "Prices fall sharply via an equity risk premium spike that is very hard to prevent or defend in one’s portfolio."

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FOX Business’ Megan Henney contributed to this report.

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At least 34 dead in Ukrainian city of Sumy after Russian missile strikes

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At least 34 dead in Ukrainian city of Sumy after Russian missile strikes

At least 34 people – including two children – have been killed after a Russian missile attack on a Ukrainian city.

The country’s state emergency service said another 117 people have been injured, with 15 children among them, in the northeastern city of Sumy.

Ukraine’s foreign ministry later added that one of the children injured was a baby girl born this year, saying “even newborns are targets for Russia’s crimes”.

Volodymyr Zelenskyy also shared videos on Telegram of the aftermath of the attack on social media, showing dead bodies in the middle of a city street near a destroyed bus.

As it happened: Russian attack is ‘signal’ to US and Ukraine

Firefighters work on site of missile strike in Sumy. Pic: State Emergency Service of Ukraine
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Two children were killed in the strike. Pic: State Emergency Service of Ukraine

Russia ‘dragging out this war’ – Zelenskyy

The Ukrainian president said on social media “only scoundrels can act like this” and that “tough reaction from the world is needed”.

Russia wants exactly this kind of terror and is dragging out this war,” he added. “Without pressure on the aggressor, peace is impossible.

“Talks have never stopped ballistic missiles and air bombs. We need the kind of attitude towards Russia that a terrorist deserves.”

Andriy Kovalenko, a security official who runs Ukraine’s centre for countering disinformation, noted the strike came after a visit to Moscow by US envoy Steve Witkoff.

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From Saturday: Putin meets Trump envoy for talks

US official: ‘This is wrong’

Keith Kellogg, Donald Trump‘s envoy for the Ukraine war, said the attack crosses “any line of decency” and that “there are scores of civilian dead and wounded”.

He added: “As a former military leader, I understand targeting and this is wrong. It is why President Trump is working hard to end this war.”

In response to Mr Kellogg, Mr Zelenskyy’s communications adviser, Dmytro Lytvynm asked: “Don’t you think it’s time to smack the Moscow mule across the nose with a 2X4?”.

Later, US secretary of state Marco Rubio said the strike was “horrifying” and a “tragic reminder of why President Trump and his Administration are putting so much time and effort into trying to end this war and achieve durable peace”.

Pic: AP
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Pic: AP

UK Foreign Secretary David Lammy added he was “horrified” by Russia’s “barbaric strike” on Sumy, and called for an “immediate ceasefire”.

Meanwhile, EU Commission President Ursula von der Leyen said “cruelty struck again” and called the strike a “blatant violation of international law”.

It came hours before a separate Russian strike killed three people in the central district of the southern city of Kherson.

Read more:
Why Putin seems to be raising the stakes
2025 ‘critical year’ for Ukraine, warns minister

The local governor, Oleksandr Prokudin, said a 68-year-old woman was injured and died in hospital and that a 48-year-old man also died after “the occupiers dropped an explosive device from a drone”.

A 62-year-old woman was also killed “as a result of the shelling”.

On Saturday, a Russian guided bomb hit a house in the northeastern Ukrainian town of Kupiansk on Saturday, injuring four people.

Governor Oleh Syniehubov said on Telegram that three others could be trapped under rubble.

It comes after Russian diplomats accused each other of violating a tentative US-brokered deal to pause strikes on energy infrastructure.

“The Ukrainians have been attacking us from the very beginning, every passing day, maybe with two or three exceptions,” Sergey Lavrov, Russia’s foreign minister, said, adding that Moscow would provide a list of Kyiv’s attacks from the past three weeks.

Andrii Sybiha, his Ukrainian counterpart, dismissed the claim saying on Saturday that Russia launched “almost 70 missiles, over 2,200 [exploding] drones, and over 6,000 guided aerial bombs at Ukraine, mostly at civilians” since agreeing to the limited pause on strikes.

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McIlroy wins Masters to complete career Grand Slam – follow latest reaction

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Rory McIlroy claims career Grand Slam with US Masters win

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Rory McIlroy claims career Grand Slam with US Masters win

Rory McIlroy has completed a career Grand Slam in golf with his win at the US Masters tournament.

The Masters was the last major tournament left for McIlroy to complete the modern golf Grand Slam – a feat only five others have managed before him.

McIlroy, who was making his 11th attempt at completing the Grand Slam, faced off Justin Rose in a sudden-death playoff to decide the Masters champion, after they finished tied on 11 under at the end of regulation on Sunday.

Rory McIlroy, of Northern Ireland, reacts after winning in a playoff against Justin Rose after the final round at the Masters golf tournament, Sunday, April 13, 2025, in Augusta, Ga. (AP Photo/Julia Demaree Nikhinson)
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McIlroy reacts as he wins. Pic: AP

Rory McIlroy, of Northern Ireland, reacts after winning in a playoff against Justin Rose after the final round at the Masters golf tournament, Sunday, April 13, 2025, in Augusta, Ga. (AP Photo/Julia Demaree Nikhinson)
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McIlroy reacts after winning against Justin Rose at the Masters. Pic: AP

“It’s my 17th time here and I started to wonder if it would ever be my time,” McIlroy said just before slipping on the Green Jacket during the presentation ceremony.

“I’m just absolutely honoured and thrilled and just so proud to be able to call myself a Masters champion.”

McIlroy had missed his six-foot putt for par, a bogey which dropped him back to 11 under, where he joined Rose – leading to a dramatic play-off between the two.

Only five other golfers have been able to complete a career Grand Slam, including Tiger Woods, Jack Nicklaus, Gary Player, Ben Hogan and Gene Sarazen.

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Pic: AP
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Pic: AP

McIlroy is a two-time winner of the PGA Championship, claiming the prize in 2012 and 2014.

The 35-year-old also won his first major title, the US Open, in 2011, and won The Open Championship in 2014.

How did McIlroy get to the victory?

McIlroy recovered from losing his overnight two-shot advantage with an opening-hole double bogey to initially take control at Augusta National, only to blow a four-shot lead over his closing six holes.

The world No 2 bogeyed the last to close a one-over 73 and slip back to 11 under alongside Rose, who overturned a seven-stroke deficit and posted a stunning final-round 66 to force a play-off.

The players returned to the 18th for the play-off, where McIlroy made amends for his 72nd-hole blunder by firing a stunning approach to within three feet of the pin and making the birdie putt required for a life-changing win.

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