Danielle DiMartino Booth: A Banking Panic Makes The Fed’s Job More Difficult
Forward Guidance
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Is the Fed Going to Indemnify?
If the Fed continues quantity of tightening and hikes to where the market thought it would a week ago, 5.5%. What does the banking system look like there, particularly the regional banks? Any more failures? What about if the Fed pauses as now the market thinks it will, maybe a 25 basis point of hike at March?" I'm looking for a very perverse form of Goldilocks here," he says. "I am advocating for shrinking the balance sheet"
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