2min chapter

Hidden Forces cover image

What the Bailout of SVB Means for the Fed's Fight Against Inflation | Steven Kelly

Hidden Forces

CHAPTER

Is the Fed Underestimating the Risk of Bank Failures?

We've built up the post 2008 system on this precept that treasuries and MBS are rock solid, both from a credit and liquidity perspective. The treasury market underwrites the whole global economy. Every interest rate is based off what's going on the treasury market. So yeah, I don't think that we're necessarily overconfident or underconfident. It's the Fed's job to underwrite the system going forward.

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