"Powell's Volcker Moment": Whatever The Fed Does On Wednesday Will Be A Mistake

A little over a week ago, when realizing the severity of the banking crisis spreading across the regional bank system (and which was about to jump the Atlantic and destroy one of the world’s largest banks in a matter of hours), we said that “Powell is trapped: more hikes and CRE leads to tens of billions of incr. losses across banking system (AFS+HTM); small banks now reserve constrained guaranteeing something “breaks.” Meanwhile inflation still hot.”

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