Powell's Card

MilkTeaBro
2023-03-17

Because of the bankruptcy of Silicon Valley Bank, Powell's cards were exposed. It is the upper limit of the interest rate level that US financial institutions can bear. In other words, the probability that the United States will raise interest rates to 5% is the limit. If US  have to compete with the rest of world to the death and raise interest rates to 5.5% or even 6%, then the United States may not be able to stand it first, because many Financial institutions are only slightly stronger than Silicon Valley Bank. If the United States raises interest rates by 1%, it is impossible to say who will be the next 'SVB'. The Fed should not be confused.

How to Interpret Powell's Testimony?
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress on 7th and 8th March. Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected. The stock market plunged after his speech. Some investors argue that the market is over-reacting. --------- [Topic] How do you interpret Powell's testimony? How do you expect Powell's testimony tonight? How will the testimony affect rate hike expectations?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
17
1