Former BlackRock portfolio manager Edward Dowd is predicting more bank failures ahead. Of the WSJ’s reporting that 186 U.S. banks “may have risks similar to Silicon Valley Bank,” Dowd predicts that only six major banks will be left standing, paving the way for CBDCs. “If you wanted to introduce central bank digital currency, wouldn’t it be better to have only six banks in the U.S., all systemically important, basically run by the government?” At the same time, Wharton professor Jeremy Siegel warns that there’s no way the Fed can lower inflation while also trying to stabilize the banking system. It’s a sentiment billionaire “Bong King” Jeffrey Gundlach agrees with, warning that he thinks we’re only months away from a recession.
Kitco News/Cornelius Christian and Michelle Makori
Fed’s ‘Emergency rate cut’ by June to precede ‘controlled implosion’ of banking sector, only 6 banks left as CBDCs rolled out by 2025 – Edward Dowd
The Federal Reserve will be forced to make an “emergency rate cut” by June, according to Edward Dowd, former BlackRock portfolio manager and Founding Partner of Phinance Technologies. He predicted that a “controlled implosion” of the banking sector would follow over the next 24 months, leaving the United States with only six major banks.
The Federal Reserve raised the Fed Funds Rate by 25 bps on March 22nd to the 475-500 bps range after a series of prominent bank failures, including those of Signature and Silicon Valley Bank, which involved the Fed, U.S. Treasury, and Federal Deposit Insurance Corp (FDIC) bailing out depositors.
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Business Insider/Jennifer Sor
The Fed’s economic outlook is ‘absurd’ and there’s no way to lower inflation while stabilizing the banking system, Wharton Professor Jeremy Siegel says
The Fed’s economic outlook is off-base and despite remarks that suggest otherwise, there’s no way that central bankers can lower inflation and stabilize the banking system at the same time, according to Wharton professor Jeremy Siegel.
“Let me tell you … how absurd the Fed’s conference and projections are absurd,” the top economist said in an interview with CNBC on Friday, referring to the Fed’s economic forecasts released at the last Federal Open Markets Committee meeting.
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Yahoo Finance/Brandon Sapienza
Gundlach Predicts a US Recession Will Start in a Few Months
Doubleline Capital’s Jeffrey Gundlach said on CNBC that he expects a US recession will start in a few months, and that the Federal Reserve will need to respond “very dramatically.”
“The economic headwinds are building, we’ve been talking about this for a while, and I think the recession is here in a few months,” Gundlach said Monday. “All we really need is the unemployment rate to go higher.”
The Doubleline Capital founder also said he anticipates the Fed will cut interest rates “a couple of times” this year. The overall state of the economy is “clearly weak,” he said.
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