Ex-Fed Pres Kaplan Urges Powell To Pause, Warns ‘Bank Pain Is Just Getting Started’

Planned financial/economic collapse is coming, as predicted…

Ex-Fed Pres Kaplan Urges Powell To Pause, Warns ‘Bank Pain Is Just Getting Started’:

After yesterday’s bloodbath, Regional bank stocks tumbled further earlier this morning (before recovering) after former Dallas Fed President Robert Kaplan warns that the US regional banking crisis is far from over…

“I’d prefer to do what’s called the hawkish pause, not raise but signal that we are in a tightening stance, because I actually think the banking situation may well be more serious than we currently understand,” Kaplan, whose career has also included time as a senior executive at Goldman, said in a Bloomberg Television interview.

And now that he’s on the outside, urges The Fed to pause its rate hike campaign.

“It is more important to be able to sustain the current rate for an extended period of time, longer than the market thinks, than to get another 25-50 basis points and risk having to cut again. I think that will be very troubling,” said Kaplan, who left the Fed in 2021 after disclosures about his trading activity that drew criticism for potential conflicts of interest.

Funny how that happens once they are on the outside.

Most worryingly, Kaplan went on to claim that bank stocks have been marked down solely because of their over-investment in US Treasuries, while the credit phase, which is “normally more serious,” is yet to unfold.

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