It's Getting More Expensive for Banks to Borrow

The video discusses the Fed bias indicator, its recent shift to a tightening bias, and the potential impact of Brexit data on this trend. It explores current market conditions, including the high dollar value and challenges in money markets, which are affecting bank funding. The video also examines the implications of money market funds moving from commercial paper to Treasurys, increasing borrowing costs for banks. Finally, it addresses the impact of falling long-term interest rates on bank margins and the likelihood of a Fed rate hike.

What challenges are banks currently facing in obtaining funding?

What changes are expected in the Fed's statement regarding the job market and inflation expectations?