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Michael Howell: Can The Fed Keep Raising Rates During A Banking Crisis? | Michael Howell

Forward Guidance

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The Inverted Yield Curve Is Exposing a Lot of Funding Problems

Bank funding has dried up, and you're seeing this through the negative effects of an inverted yield curve. You can't correct the banking, the funding problems in the banking system until you've got a upward sloping yield curve. And one of the things that the authorities have got to do is to get bond volatility down pretty quickly. Don't worry about looking at the VIX anymore. It's much more important than the secondary move index because it's driving the system.

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