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The market is buying this up, failing to realize that things will continue to break as interest rates are increased further. The Fed isn't interested in saving banks. They're there to quell inflation.

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> The market is buying this up, failing to realize that things will continue to break as interest rates are increased further.

Expectations of Fed action haven’t changed, expectations of FDIC/Treasury action to protect banks have. The information not already priced in is positive.

That's incorrect. Last week, the market was expecting a 50BPS increase. Now it has suddenly decided there is a 0% chance of 50BPS, an 81% chance of 25 BPS and a 19% chance of no hike.

https://www.investing.com/central-banks/fed-rate-monitor

What I meant was that expectation of continuing increases wasn't new, but thank you for pointing out that, in fact, expectation of such increases is actually declining.

This may be in support of the 50bp hike the media was stuffing into Powell's mouth all last week after his statements before the Senate, find out where else powerful people have built crab traps.

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