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Pod 22: 5.0% CPI, the Macro + banking landscape, rate hikes or pauses, the federal reserve's decisions and inflation

Unusual Whales

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The Fed's View of the Credit Crunch

The possibility of a credit crunch rather than the people we're watching for has widened. And it could take several months for this to kick in. We don't know what kind of a drag in economic activity and inflation this these banking troubles are going to have. So I think given the direct relation between monetary policy channels and financial stability, I think that the Fed is much more concerned with potential financial instability than it is with inflation when it really comes down to it.

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