Part 6/10:
Despite Powell’s claims of a strong and resilient banking environment, signs point in the opposite direction. The recent banking collapses and the rapid succession of failures suggest management failures and systemic risks brewing beneath the surface.
Analysts argue that much of the problem stems from prior excessive monetary easing, which fueled credit bubbles and set the stage for the current turmoil. The Federal Reserve’s belief in its ability to manage these crises may underestimate the potential for contagion and systemic collapse.