During an interview with CBS News on Tuesday, Moody’s Analytics Chief Economist Mark Zandi stated that the problems in the banking industry are the inevitable result of rate hikes by the Federal Reserve where “things are going to start to wobble and break and it’s going to feel uncomfortable.” And because inflation is “still high” “the next 12-18 months are going to be uncomfortable.”
Host John Dickerson asked, “It seems weird to go back to something Powell said before all of this banking stuff, but recently, in his testimony in the Senate, Chairman Powell talked about how things were going to get bumpy after the Fed made its moves. What does bumpy mean to you and is what we’ve seen in the banking industry, is that essentially what bumpy looks like?”
