The FED's in a bit of a pickle.
Either, Jerome Powell continues to hike interest rates in an effort to control inflation. Which would mean government bonds continue to lose value exacerbating the current banking issue and pushing the U.S. toward recession.
Or, the FED lays off the interest-rate hikes to save the economy. Which could push inflation higher.
Read more hear.
The next rate hike will come on March 22, 2023. Next Wednesday.
It's unclear at this moment how the FED will respond.
Banks are ensuring the system is safe. That the issue is localized to those most exposed to crypto and tech venture capitalists.
When it comes to SVB …
The Silicon Valley Bank's SVB Financial Group (NASDAQ: SIVB) own employees blame the bank run on the CEO's carelessness.
The company revealed it had multi-billion dollar problems before securing any kind of funding or drawing up a plan.
Here are the details.
"That was absolutely idiotic. They were being very transparent. It's the exact opposite of what you'd normally see in a scandal. But their transparency and forthright-ness did them in."
- Anonymous SVB Employee
We'll keep an eye on this catalyst. For the time being, things seem contained.
Mark your schedule for next Wednesday's FED meeting and interest-rate decision.
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