Rapid rate rises after years of ultra-low rates have caused pain. But changing course as markets slid could have exacerbated that.
A measure of volatility in the Treasury market has eased after hitting its highest level since 2008 in MarchLow and stable inflation is good for markets and the economy, so central banks had to show their seriousness on inflation, Tannenbaum added.After staying the course comes selling the message. U.S. banks face borrowers defaulting on car loans and student debt, while UK mortgage borrowers rolling off cheap fixed rate loans onto more expensive deals could spark defaults, Blanchflower added. "The tentacles," of bank failures, he said, "are much longer than folks think."The 2008 crisis prompted global efforts to stop taxpayers funding bailouts of troubled banks.