I think the real concern is that the fed has backed itself into a corner. Banks will face liquidity crunch due to rise in interest rates which will require fed

I think the real concern is that the fed has backed itself into a corner. Banks will face liquidity crunch due to rise in interest rates which will require fed to step in to guarantee depositors, which it basically can only do by printing money (or some flavor of printing money). At the same time the fed won’t back down from continuing to raise rates to stem the tide from growing inflation (can’t cut the stimulus checks without them being cashed), which will only put further pressure on banks. The fed may have to pull some other lever (say reserve ratios to enforce banks to maintain liquidity). However this will wipe out bank valuations and raise the cost of debt which may end up putting further deflationary pressure on economy. I mean again it may be more complex (not in finance) but the situation looks dire.