The Fed Hikes, Credit Tightens and Commercial Real Estate Looks Like the Next Problem for Banks
The Breakdown
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The Fed's Thinking in the Fed Meeting
The Fed almost always follows the market, but with a major economic shock occurring so close to a Fed meeting, it was hard to know how the FOMC would weigh volatile market pricing. The only example of the Fed going against market consensus in the post-1994 forward guidance era was in September 2008. While this effect hasn't significantly impacted equity markets so far, the dramatically reduced liquidity conditions for banks could take some time to feed through.
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Transcript
