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Fed is “prepared to address any liquidity pressures that may arise” - a workaround for unrealized losses and the fed saw potential systemic risk.
"The Fed is explicitly trying to tighten financial conditions, but also has responsibilities to promote a stable banking system. A liquidity facility for banks that ignores losses from rate hikes is uniquely positioned to walk that line." - Steven Kelly
The $250K deposit insurance cap is not really useful anymore.
It's kind of a bailout
Video Length: 00:09:17
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