The public must have confidence in the banks, and the banks must have confidence that the Federal Reserve will always catch them before they fall. We’ve seen several smaller banks go under in 2025, yet they were small enough not to raise concerns. The Fed fears panic more than it fears inflation. Powell knows that the central bank lost the ability to control inflation, but for now, it can control panic.
https://www.theburningplatform.com/2025/11/12/fed-quietly-injects-125-billion-in-repo-market/