In today’s briefing:
- Fed’s Inflation Fight: Upended by Banking System Concerns?
Fed’s Inflation Fight: Upended by Banking System Concerns?
- Potential fragility in the US banking system raises the ante on the Fed to pause increasing its policy rate. Easy money impaired banks’ ability to endure higher funding costs.
- Newly available access to the Fed’s balance sheet incurs consequences, including moral hazard, less competition and potentially easier financial conditions when inflation remains elevated.
- Markets are discounting that the Fed will ease policy settings to counter banking system events. The Fed faces difficult challenges in trying to quell inflation and preserve financial stability.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries