Can The Fed Keep Raising Rates Amidst A Banking Crisis? | Michael Howell
Inflection Point
00:00
Do You Think the Fed Will Do Anything About the Yield Curve Control?
Is this primarily a liquidity issue in the banking system or do you think it's a solvency issue and dependent on what your answer is, does that impact your review of what the Fed ultimately will do? Yes. The Federal Reserve is embedding now and operating loss in these banks on their security portfolios. What you can't have over the long term is an inverted yield curve. Effectively, you've got to have that changing its gradient. If we're in a situation where there is more oversight and more involvement in the bankingsystem, both in the US and worldwide, then I think you're looking at a situation where we move very quickly to what I've called yield curve control.
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