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Markets stay cautious after the Federal Reserve rate hike, Citigroup head Jane Fraser weighs in on bank runs and short-seller Hindenburg Res [View in browser]( [Bloomberg]( Markets stay cautious after the Federal Reserve rate hike, Citigroup head Jane Fraser weighs in on bank runs and short-seller Hindenburg Research warns of a new report. — [Kristine Aquino]( Fed aftermath Caution reigned in markets on Thursday following the [Fed’s decision to proceed with a quarter-point rate hike](, combined with Treasury Secretary Janet Yellen’s remarks on the health of the banking sector. While Fed Chair Jerome Powell assured that regulators’ actions demonstrated “all depositors’ savings are safe,” Yellen said regulators aren’t looking to provide “blanket” deposit insurance. Investors in a Bloomberg News survey following the Fed decision said they’re convinced the central bank will raise borrowing costs again this year and [won’t pivot to monetary easing until 2024](. Mobile money Citigroup’s Fraser said [mobile apps and consumers’ ability to move millions of dollars](with a few clicks of a button mark a sea change for how bankers manage and regulators respond to the risk of bank runs. “It’s a complete game changer from what we’ve seen before,” Fraser said in an interview with Carlyle Group Inc. co-founder David Rubenstein. She added that the fast demise of Silicon Valley Bank also made it difficult for banks to assess and prepare bids for its assets, and said that her firm hopes a buyer will emerge in the coming days. Short-seller suspense [US short-seller Hindenburg Research will soon release a new report](, according to a tweet that didn’t offer any more details. The firm run by Nate Anderson gained more prominence this year when its scathing report on billionaire Gautam Adani’s business empire erased more than $150 billion from the Indian conglomerate’s market value in about five weeks after it was [published]( on Jan. 24. Mixed markets S&P 500 futures bounced 0.5% as of 5:49 a.m. in New York, while Nasdaq 100 contracts closed in on a 1% gain. Treasury yields climbed across the curve, paring some of yesterday’s declines. The Bloomberg Dollar Spot Index traded near the lowest in seven weeks, boosting all of its Group-of-10 peers. Gold rose and oil fell, while Bitcoin rallied more than 1%. Coming up… At 8:30 a.m., we’ll get initial jobless claims data, as well as the latest reading for the Chicago Fed gauge of national activity. New home sales figures are due at 10 a.m. The US will sell $60 billion of four-week and $50 billion of eight-week bills at 11:30 a.m., and $15 billion of 10-year TIPS at 1 p.m. Earnings include General Mills, Darden, FactSet. What we’ve been reading Here’s what caught our eye over the past 24 hours: - [Powell’s own guide to recessions]( shows rate cuts are coming - Fed, SNB set to be joined by BOE in [prioritizing inflation over crisis]( - [Bill Ackman warns of accelerated deposit outflows]( after Fed decision - Couple claims [JPMorgan sold $10 million of jewelry]( from a deposit box - The US fears a world weary of war will [embrace China’s Ukraine proposal]( - Consumers foot the bill for [traders `manipulating’ UK power markets]( - A Chinese firm invents a [kissing machine for long-distance lovers]( And finally, here’s what Joe’s interested in this morning Yesterday's Fed decision and press conference felt unusually turbulent. Obviously Powell is in a tricky situation. It's not merely that there's this fresh tension between inflation and financial stability. It's also that the Silicon Valley Bank collapse was so recent, it's hard to know what it means yet for anything broader. An intelligent person could come up with an argument that SVB (along with Silvergate and Signature) was a highly distinct institution, whose failure says nothing about banks overall. And someone could take the opposite view, that it's naive. That indirectly, or directly, this will cause lenders and borrowers to pull back. But it hasn't even been two weeks yet. One clear challenge facing Powell, and also Yellen, is what to say about bank deposits. At one point, in his very introductory remarks, Powell said that recent actions taken by the Fed, the Treasury and the FDIC "demonstrate that all depositor savings and the banking system are safe." Then later he was asked specifically, whether deposit insurance covers all savings, to which he responded: "Well, I'm not saying anything more than I'm saying. But what I'm saying is you've seen that we have the tools to protect depositors when there's a threat of serious harm to the economy or to -- or to the financial system, and we're prepared to use those tools. And I think depositors should assume that their -- that their deposits are safe." Anyone can interpret that how they will. Of course, Powell also took a number of direct questions about the supervisory failures behind the SVB collapse. And he also talked about both the internal and external investigations that will be happening to figure out what went wrong. He didn't have much in the way of answers yet. However, the fact that there will be all these hearings, and investigations, and so forth, unambiguously drives home the public nature of banking. That a bank failure isn't like a normal business failure. [This is a theme of today's episode of the Odd Lots podcast](, with Cornell Law Professor Saule Omarova, on the case for the public to have checking accounts at the Fed. Back to the press conference for a second. There were two other parts that jumped out at me, both relating to the labor market. At one point Powell said "with job vacancies still very high, labor demand substantially exceeds the supply of available workers", which seems to be taking the JOLTS data very literally. Then later, he was asked a question from [Nicole Goodkind]( of CNN whether there is a risk that unemployment really starts to snowball once it rises. Basically the question of whether the Fed's target that unemployment [will only rise about 1 percentage point is realistic](. What was notable here is that Powell didn't really answer the question. He said the employment estimate is "highly uncertain" and then immediately he pivoted to the importance of bringing down inflation. Clearly getting inflation down is the macro priority for the Fed. Everybody knows that. But when it comes to talking seriously about the employment costs of achieving inflation victory, Powell doesn't have much appetite for that. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](