o this puts the Fed on the horns of a dilemma. If it keeps raising rates, more things will break in the financial system. Bank balance sheets will get weaker, putting them in more danger of bank runs like the one that just happened to SVB. But if the Fed pauses its rate hikes or cuts rates to ease the pain in the banking world, it runs the risk of losing its credibility and letting inflation go out of control, necessitating even bigger rate hikes and even more pain in a few years.
Alles wat Jan bezig houdt, interesseert en irriteert... en ook een beetje onzin...
woensdag, maart 15, 2023
SVB and the Fed
Gepost door Jan Romme op 6:45 p.m.