FED is doing all that’s needed to help the banks with the liquidity issues. They announced that it will offer daily swaps to the Bank of Canada (BoC), the Bank of Japan (BoJ), the Swiss National Bank (SNB) and the European Central Bank (ECB) to ensure they have enough liquidity to continue operations. In other words, this means if some banks will not have money, dont worry, FED is here to help you. But where that money is coming from? They just print money, but we know that this brings in more inflation. Fed must be worried about the situation and recession is ticking on it’s door so FED will surely try to calm down the markets this week on its meeting. There can be dovish comments which can later be supportive for stocks. But for now, however, stocks are still bearish with US yeilds coming down as well, so markets love the safe-havens like JPY and GOLD, while DXY is sideways.
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Webinar recording Monday Mar 20 2023