The savings & loan crisis 2.0: Is the Fed about to pivot or switch gears?

Market looking for direction

clock • 3 min read

All Souls College, Oxford, is famous for its ultra-competitive and somewhat boggling entrance examination questions, once described as the hardest examination in the world.

While I have never applied to the college, the question on my mind right now is equally as challenging. The Fed has been vocal and steadfast in its approach to addressing inflation; its main monetary policy tool is seemingly acting as a catalyst to a new savings & loan crisis. Is this a storm in a teacup? A precursor to a Lehman Brothers-type event? And what is in the toolbox to navigate the road ahead? Three decades in three years This week's FOMC meeting is set against a backdrop of sticky inflation, several US regional banks looking for white knights and the knowledge that US ban...

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