Disliked{quote} The bottom line is it isn't the 2% rate the FED still wants! Now that bank accounts are protected the path is cleared for more rate hikes!Ignored
But many tier-2 banks are highly overleveraged, their debt to equity ratio arent 1:1.
More rate meaning more cost of borrowing, which could still caused a problem for these banks in the future.
For now market priced in no change(49%) to 25 bps (51%) FOMC rate hike[CME-fed watch]. We will wait and see how the market unfold and price in the development in the bank crisis and also Powell was Hawkish last weeks (Powell testified),so more rate hike is still possible.
Not afraid to be wrong, ik what am goin' to lose!
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