On May 6, former Credit Suisse U.S. strategist Zoltan Pozsar said that the Federal Reserve’s “pretty aggressive” cleanup of the U.S. banking system shows that the Fed will not let anything hinder its plan to reduce inflation.
Speaking at a New York Fed seminar on Friday, Pozsar said he had never seen the Fed be more proactive in preventing a crisis than it is now, and that wherever it might go wrong, the Fed would be one step ahead.
He also said rates could rise further from here, noting that the economy remains awash with liquidity and households have extra savings.