Banking industry jitters could mean more pain for stocks by dragging out Fed's battle with inflation

Aftershocks from the collapse of three American banks in less than a week could spell more pain for stocks in the weeks ahead by creating new obstacles for the Federal Reserve in its battle against inflation, market strategists said.

The regulatory response also included a new Fed program, called the Bank Term Funding Program, or BTFP, to lend money to banks in a manner that values their collateral at par. Other strategists said the trend already appeared to be manifesting in markets as investors on Monday flocked to the safety of government bonds, while the Dow Jones Industrial Average DJIA finished lower for the fifth straight session, its longest losing streak since September.

Since the market opened on Thursday, the S&P 500 has fallen by more than 3%, according to FactSet data. Also, the Cboe Volatility Index VIX , otherwise known as the Vix VIX or Wall Street’s “fear gauge,” hit its highest level since October on Monday, according to FactSet data, climbing north of 25. “Pausing because you think there’s systemic risk in the banking sector, or some other reason, is different than saying ‘our job is done here’,” Aama told MarketWatch by phone.

The Fed also need to monitor how quickly concerns about the stability of the banking system subside, said Steven Kelly, senior research associate at Yale’s program on financial stability, in a phone interview with MarketWatch.

FED May have to live with high inflation a little longer to avoid creating financial crisis instead of recession. The high inflation is kept up mostly by Biden’s policies and decisions anyway.

SNDL INC 😎😎😎

We may find out If Powell's fast big Fed hike policy circumvented our banking system with too little thought on consequences. Scenarios. If Powell raises again next week contagion could ramp unemployment and cost cutting super fast with not too much damage, or rip us up. STOP!

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US futures steady after Fed moves to restore confidence in banking system | CNN BusinessUS stock futures were holding steady Monday after an extraordinary move by US financial regulators to restore confidence in the country's banking system. The sheep will only read this headline and carry on with their lives like everything is fine. And that is the point of this headline. To keep the sheep in order. CNN wrong again for the 5,019,456,234,111st time. But can't cancel student loans... Save the bank,screw the people.
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