Fed's been clear a rate increase will cause a necessary period of pain, says Stifel's Lindsey Piegza

Garcia Hamilton Associates' Gilbert Garcia and Stifel's Lindsey Piegza join 'Power Lunch' to discuss Fed hikes going forward, the impact of Silicon Valley Bank's crisis on Fed policy and expectations for upcoming CPI data.

[Doctor_klausmartens]

"It's not on the Fed to Handhold risk management" well said. and no, no bailout again .

[meehanasap]

It's amazing how many families are struggling right now and have been as the fed tightens the screws, but minute a bank fails the world stops for them. If a bank can't see this coming that is there problem.

[thecountofmontecristo]

The Fed gave this bank and many others months and months of advance warning. They didn't just wake up one morning and hand the market 5% interest rates. If SVB's risk managers couldn't plan for what was coming as the entire world adjusted to the prospect of higher rates then that's on them. The notion that a bank failing is the Fed's fault or that a business failure should immediately be followed up with government support of some kind is absurd. The reality is this bank was taking every possible risk available to them with their capital and refused to listen to the warnings and change in the macro environment. If the Fed stops raising rates now or worse still cuts they've lost their battle with inflation. If the Fed is to change course here it won't be for a bank like SVB. Remember people, businesses go out of business during recessions, just as people lose their jobs. The Fed will absolutely have expected this as a necessary consequence to their action.

[HS-lbkv]

Lindsey was great. The guy is probably caught on the wrong side. If SVB made wrong moves, it is not upto Fed.

[AlKindi]

These hosts can’t handle the pain 😂 it’s just getting started. Enjoy!

[mookm]

Of course this guy wants the fed to stop 😂he’s probably over extended, portfolio on fire, losing his ass

[carter]

Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.

[CJ-vzbl]

This guy had 80% of his portfolio in SVB

[jq]

The federal reserve must keep the course and increase interest rates.

[johndingle]

I don't understand. Even a cab driver knew rates were going up. Why were there so many idiots working at a bank?

[Superformance]

there's literally no chance they cut rates.

[DannyFyffe]

This Garcia know nothing is indeed a GREAT representative for this channel.

[truepersona]

SVB.
The first DOMINO to fall and many to follow. The SOFT LANDING has begun.

[johndingle]

The CEO cashed out his shares 2 weeks ago. $3.6 million. 14 days ago.

[abcdLeeXY]

I couldn’t understand what the 3 other hosts were saying. Only heard Lindsey speaking common sense.

[israelrodriguez]

Garcia shut up! .50 basis points are needed

[ironmikehallowween]

They didn’t break something, bad investment decisions by that bank broke something: Itself. That’s the way it should be.

[teacherrussell]

Times like this, tv's nickname "The idiot box" just pops into my head for some reason.

[johndingle]

Becker, who served on the board of directors at the Federal Reserve Bank of San Francisco,  departed the board effective Friday, a spokesperson for the regional Fed bank said.
In January, Becker said the economic outlook was improving after a downbeat 2022.
“We're optimistic because our crystal ball is a little clearer, " Becker told CNBC. While he expected public markets to stabilize, "We still think in the first half there is going to be more volatility."

Reuters

[sttv]

Do you remember the election where this was the key issue? You know, the one where one set of candidates said that we should massacre the economy to keep bread prices low, and the other set said nah, let’s not? And of course the side that wanted higher rates no matter the cost won that election, which is why this policy is now in place. Well I don’t remember that either.