by James Rickards
Daily Reckoning
It’s often said that the Fed raises interest rates until something breaks. Well, something has broken.
The collapse of Silicon Valley Bank (SVB) has really thrown Jay Powell and the Fed for a loop.
Just last week, Powell issued some very hawkish testimony before Congress about the need to maintain an aggressive stance against inflation. Markets were even factoring in an 80% chance of a 0.50% rate hike at next week’s FOMC meeting.
But what a difference a week can make.