As long as the Fed keeps tightening, the banking crisis will grow

Aggressive rate hikes and QT are reducing bank deposits and the value of bank assets - a combination that will see banking sector stress continue to grow.

Many believed that after First Republic Bank was dealt with, that the US banking crisis would fade away, with the “weak” links having now been dealt with.

Though on the contrary, as long as the Fed continues its aggressive tightening — which includes not just its aggressive interest rate rises, but also its quantitative tightening (QT) — banking sector s…