Unless we see a total collapse (like in '08) this week they need to keep raising it. Inflation isn't just going to go away on it's own. The more I read into SVB they made some very bad bond purchases.
I read it wrong - I interpreted "account categories" as checking/savings, etc and that EACH Account was insured for 250k. It appears that if you had 4 checking accounts, the TOTAL for all 4 accounts would be 250k - I read it as though in that case it would have been $1,000,000 - That does not appear to be correct. If you have money in a checking account, an IRA, a CD and a money market account then THAT would be covered up to 1 million.
Maybe they going to ( God forbid!) "Bail Ins".
Bad fiscal policy hurts everyone. Some will be affected in the near future. Many of us will be impacted immediately. But the Democrats’ Big Tech cronies will have their suffering minimized at the expense of everyone else.
I think the fed should be nervous about raising interest rates, but because I don't think they fully understand what's causing inflation to keep rising, it's different from past cycles where many times rising wages caused inflationary spirals, this time around things were relatively in balance(excepting housing, fed by low rates) until the pandemic , supply chains were disrupted and the gov doled out billions, prices rose and continue to rise, funny thing though most corporations are reporting healthy profits and people continue to spend so not much downward pressure on prices and wages haven't risen that fast. Sometimes it takes time for equilibrium to return, but elections ride on quick results. These corporations are huge and wield a good deal of pricing power themselves, sometimes detached from market conditions, but overall yrs of inflated money supply eventually has consequences and this time around the pandemic exacberated things. The fed has little accountability, if they did why would jay Powell have a job. And I love that cartoon with the monkey at the controls.
So what message does that send to banks that wish to engage in speculative investments with depositors monies? And what of the liquidity tests supposedly tighter after 2009 imposed on the banking system, did the examiners do their job?
I'm sure it's nothing good for anyone.
They made the choice... inflation is going higher. The only way to stop inflation is to raise interest rates. They will be bailing out the banks and lowering interest rates to keep banks liquid and solvent. US standard of living will be negatively impacted.
I know my Crypto holdings crashed like 17% in past few days. But they already recovering.
And whomever owns that $350k CD is out $100k, which is how the government likes itFDIC is up to $500K with a joint account holder.
https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/
What I read is right now many smaller institutions are being hurt by the fact people are maxed out on credit and 1/2 point raise would eliminate them from borrowing additional money alongside the fact they also provide many auto loans that are now starting to default. Plus paying out higher rates to attract new money is another problem. This mess seems bigger then anyone admits at this point. I think history is being made.
