Global GDP
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TITLE: Falling Dominoes: the Impending Collapse of the US Banking System
It is reported that the former Assistant Secretary of the Treasury of the Federal Reserve said that the Federal Reserve would have to stop its high interest rate policy because it was destroying the balance sheet of the financial sector. The US banking system is not safe because the risk exposure of its five largest banks is twice the global GDP. Due to the global interconnection, the US banking crisis will spread abroad. Former US Treasury official: The Federal Reserve will have to stop its high interest rate policy Analysis based on this information:KEYWORDS: Federal Reserve, Interest rate policy, Balance sheet, Risk exposure, Global GDP, Interconnection, Banking crisis, Collapse A former Assistant Secretary of the Treasury of the Federal Reserve recently sounded the alarm on the US banking system, warning that its high interest rate policy may be causing irreparable damage to its balance sheet. The issue with high interest rates lies in its impact on banks’ risk exposure. The…
