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> this all represents a policy response that cannot be sustained, and so it won't be. Are you implying increased interest rates, as set by Federal Reserve, wil
by landemva 3y ago
> this all represents a policy response that cannot be sustained, and so it won't be.
Are you implying increased interest rates, as set by Federal Reserve, will not continue?
Or that Federal Reserve plan to pump underwater bank UST holdings will be enough to make it all OK?
"The Bank Term Funding Program (BTFP) is a lender of last resort facility. It was created in March 2023 ..."
https://www.brookings.edu/articles/what-did-the-fed-do-after-silicon-valley-bank-and-signature-bank-failed/ https://www.brookings.edu/articles/what-did-the-fed-do-after...
- JumpCrisscross 3y ago> Are you implying increased interest rates, as set by Federal Reserve, will not continue? This is a recurring meme in Silicon Valley. To the point that I think executives at SVB believed it: that the Fed is constrained in raising rates by things like balance sheet losses or the interest cost of the federal debt. (It's not. It's constrained by job losses.)
- landemva 3y agoSVB didn't care and had a C-level on board of directors of S.F. branch of Federal Reserve which was SVB's regulator. To clarify, I think it is likely increased interest rates will continue. Federal Reserve follows interest rates / inflation numbers, and war brings inflation.