Markets Are Only Calm For The Moment

Has the Federal Reserve lost control of the treasury market? "The markets are only calm for the moment. The risk is that the Fed is crowding out its own banking system by raising rates to fight inflation. A good chunk of banks has a risk of their funding costs moving up above earning asset yields. There is a banking system where there are low cost deposits, which have begun moving into higher yielding products like treasuries and money market funds. That puts banks in a bind," says Luke Gromen.