Jerome Powell on the horns of dilemma of the Federal Reserve's own making

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'We have a fragile system, there is no doubt.' Jerome Powell in the horns of dilemma of the Federal Reserve's own making

Yet the move to rescue depositors has also been condemned. Ken Griffin, founder of hedge fund Citadel, told theon March 13:"The U.S. is supposed to be a capitalist economy, and that's breaking down before our eyes... there's been a loss of financial discipline with the government bailing out depositors in full."

Plunging bond prices have left the U.S. banking system's market value of assets $2 trillion lower than suggested by their book value. Banks in the U.S., Japan and Europe have collectively lost $459 billion in market value this month, as of Friday. However, fears another rise will increase the squeeze on long-dated Treasuries had been abated somewhat last week, thanks to the Bank Term Funding Program, which led some people to think rates would be going up.

"Everyone understands why they wouldn't go forward. People are nervous. Inflation is high but did come down a little last month. The other side of the issue, if you pause now the market will expect you to continue reducing rates… They should stay the course and get inflation down."although he warned the Fed against it"I just think to save... their credibility, they'll probably raise rates 25 basis points.

 

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Why are you giving that ignorant, racist clown Bethany Mandel space to expand on her views in your publication? Are you really going to play 'both sides' when fascists are one of the sides?

When you pump trillions of new dollars into a banking system and then guarantee $250,000

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