The worry is the collapse of SVB and Signature Bank are just the start of a longer list of casualties from the Fed's shift to the highest rates since policymakers began slashing borrowing costs in 2007.
From Bloomberg: With the central bank preparing to boost rates again Wednesday, Nov. 2, and Americans voting in midterm congressional elections Nov. 8, Senate Banking Committee chief Sherrod Brown of Ohio and Colorado Sen. John Hickenlooper last week publicly lobbied Fed chair Jerome Powell to exercise restraint.
Yellen faces currency war redux as she ditches a strong dollar
Saleha Mohsin and Liz Capo McCormick, Bloomberg News
Yellen: U.S. Needs to Take On China s Abusive Practices VIDEO SIGN OUT
Treasury Secretary Janet Yellen faces one more headache on an agenda packed with everything from COVID-19 relief to addressing inequality and overhauling tax policy: tensions over foreign-exchange intervention.
The dollar has tumbled 13.1 per cent from its high last March, thanks in part to historic moves by the Federal Reserve to pump liquidity into the financial system and pull down American borrowing costs. While policy makers abroad at first benefited from U.S. action to stave off a global credit crunch, the appreciation of their currencies more recently threatens to curtail their own recoveries. So from Europe to Thailand to Chile, officials have laid out plans for sustained intervention.