The next Fed rate-hike plan. 03/22/2023
- Thread starter Overnight
- Start date
Why ask the obvious? If Powell had brains, SVB wouldn't have gone bankrupt. He would have foresaw that coming. He's now in a very tight spot. I bet he's like a deer in the headlights. (BTW what's the difference between lowering the rate and giving out free money to the depositors?)
No change in March but -25 bps in May.
No change in March but -25 bps in May.
I'm not asking anything. It is a poll, you silly.
Isn't it a bit early to call for a rate cut in May?
It's gonna happen. Just don't say I didn't (say it) when it happens.
That is quite stark. So make a poll! Go on, it is fun!
Interesting perspective.
To elaborate, I agreed with the previous +25 hike, but the language Powell used immediately following the hike - which he tried to walk back - was not fitting to the situation, I believed (in Feb) additional rate hikes would have been needed.
To touch on the collapse of the banks (SVB, SilverGate and the other), I do not believe they are the tip of the iceberg, rather than a failure to hedge interest rate risk and being "fringe-banks"; and CS is just being caught up in the drama.