Banks Update, President Powell Expectation (Inflation) and More!

Level 4 - Turbo Autist

Welcome Avatar! Unsurprisingly, our post on Sunday wasn’t enough to cover all the changes in the banking sector: 1) CS is trading like it is going to go under - getting another $54B from the Swiss national bank (source), 2) First Republic Bank is reportedly exploring a sale - question… is it worth anything after being downgraded to junk (source) and 3) the 2-year bond has completely collapsed - this means the bond market predicts massive rate cuts at the end of the year (emphasis, bond market predictions are usually accurate but we’re in 2023 where anything can happen if inflation is out of control - more on this later in the post!)