Macro guru Hugh Hendry has broadened his outlook on the US banking system amidst the ongoing disorder in the financial sector. In a recent interview on Stansberry Research with Daniela Cambone, the hedge fund manager claims that the Federal Reserve’s strict monetary policy has augmented the chance that banking customers may someday face limitations on the quantity of cash withdrawals they can make from their accounts.
Hendry stated, “I feel this probability is rising like mercury. We can’t disregard it.” He further explained that a “debt accumulation” has been pushing the Fed to intensely manage rates, and this “could starve the banking sector of liquidity,” potentially resulting in banking customers experiencing restrictions on their withdrawals. “It’s a passing thought, but the circumstances are changing quickly,” he said.
The Daily Hodl reported on this story here.