The increase comes even as the European economy slows
``It would be very premature to declare victory," Powell says
The ECB is expected to hike rates by a half-point on Thursday
Equities bounced back but fixed income remained weak amid restrictive monetary policy
The increase represents the fourth consecutive quarter that the rate has climbed
Capital markets have mixed effects on banks' revenues
Housing market turmoil, deeper U.S recession pose threats too
Volatility and uncertainty drove a rise in banks' cross-border claims
A downshift in rate increases is fueling enthusiasm on Wall Street that hikes will soon stop
Macro slowdown and emerging-market sovereign downgrades loom over ratings