Sims said:You gotta remember he's probably got a superior view into the condition of the banking system as one of the main bank regulators in the country.Logos Stick said:Agthatbuilds said:
I heard it on a news ticker on nprQuote:
Atlanta Fed President Raphael Bostic for instance said he sees a single rate cut this year in the fourth quarter.
"Given that the U.S. economy has been so robust and so strong and so resilient, I can't take off the possibility that rate cuts may even have to move further out," Bostic said in an interview with Yahoo Finance on Tuesday.
If they cut rates in Q4 with inflation above 2%, you will know Powell is a ****ing Marxist pig just like Biden. Period. There is absolutely no way to justify cutting rates!
He's already reversed himself and is adding money to the money supply by buying treasuries. You don't do that if you are trying to stifle inflation.
They're surely tracking the number of banks that are in really bad shape. Given the fact the BTFP has expired and CRE issues seem to be looming - there is a chance that he may have to drop rates to avoid (or in response to) those banking issues as to not cause a cascading failure.
At the end of the day, the Fed has become too much of a key player in the financial markets and my interpretation is that is something Powell is trying to get away from - both in his rate policy and in furthering implementation of Basel 3. Now if he gets punched in the nose with a series of bank failures, he's going to have to respond and that will either take the form of rate cuts or another discount window. Either way just postpones the necessary destruction that needs to take place to heal our economy.
I would think the banks with a bad portfolio of older bonds would have already taken the hit. We did see a lot of that manifest itself earlier. But OK, lets see how it plays out.