Fed Should Stay on Course to Raise Rates: Morgan Stanley

The video discusses the focus on duration risk and interest rate exposure, particularly in the context of recent treasury losses and developments in Europe. It highlights the importance of understanding financial sector risks, including bank funding models and the differences from the 2008 financial crisis. The discussion then shifts to the role of central banks, emphasizing the need for continued rate hikes to combat inflation and preserve credibility, despite potential risks of systemic relevance.

What potential risks could arise from not addressing inflation effectively?

What are the implications of the Fed's regulatory and examinatory roles on its operations?