Powell's Card
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.
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