Originally Posted by Onlydo2days
So the fed is basically done hiking? Why did the market tank then?
He's sticking to his guns on inflation. I think the UK inflation uptick was part of it maybe. UK CPI up 10.4% vs 9.9 estimate
. Just came out last night. Said they will stay the course. He did pretty well being even toned. Immediately after him Yellen put out that they are not considering a backstop of uninsured deposits or raising FDIC limit. That brought the stock market and banks to lows.
Treasury Secretary Janet Yellen told a Senate committee that she's not considering expanding the FDIC's insurance limit of $250,000. “[We've] not considered or discussed having anything to do with a blanket insurance or guarantees of all deposits,” Yellen, however, said that if there’s a contagious bank run, the Treasury would likely pursue an exception that would permit the FDIC to protect all depositors of the failed banks. This would be considered on a case-by-case basis, she told senators.
Powell *POWELL: IF WE NEED TO RAISE RATES HIGHER THAN EXPECTED, WE WILL
bank stress: such a tightening and financial conditions would, would work in the same direction as rate tightening in principle. As a matter of fact, you can think of it as being the equivalent of a rate hike. Or perhaps more than that'
They're going to let the market work itself out and contraction to insue
Last edited by Jupiter0; 03-22-2023 at 05:33 PM.