…the Fed did exactly what it was chartered to do here…. protect the US banking system. And it did that while paying lip service to coordinating central bank policy to keep US dollar funding markets liquid, which is also part of its job, as long as it is in service of its primary job, protecting US banks.
And, as I’ve argued over and over, while there are still massive holes in the global financial system because there aren’t enough dollars to go around, the Fed is now in control of who gets those dollars. Watching who does and who doesn’t get preferential treatment is now the key to understanding what happens next.link
I have excerpted one major point from a longer piece with much more information. ABN