Powell said: "We have significantly strengthened the financial system, enough to withstand losses like those in a financial crisis."

This statement was also made in 2007. The person who said it was then-Fed Chair Ben Bernanke. The following year, Lehman Brothers collapsed.
I'm not trying to criticize Powell. It's because history repeatedly proves one thing: before every financial crisis, regulators have just patched up the last crisis. They always reinforce known vulnerabilities, while crises always break out from the unknown.
In 2008, they patched bank capital requirements, then shadow banking grew wildly; in 2020, they added liquidity tools, and private credit and commercial real estate quietly became new bottlenecks.
Now, with UBS freezing redemptions, Japanese bond yields hitting 25-year highs, crowded arbitrage positions, and AI valuations overextended—how many of these risk points appear in Powell’s stress test models?
The phrase "We are prepared" is the most expensive statement in financial history. Not because it’s a lie, but because the person saying it is always prepared for the last war.
#鲍威尔 #Federal Reserve #金融危机 #Systemic Risk #MacroWarning