They are intentional and the direct effect of raising interest rates (aka: sucking up liquidity). Liquidity has to come from somewhere and since it's the interest rate being raised here, it comes up from everywhere it can come up (ie: SVB bank blowing up). But I guess 401K holders don't have Janet Yellen to help bail them out.
By the way, since people are pulling money of their retirement accounts, this is new liquidity hitting the market or, essentially, inflation. The deflation, in this case, will happen at the people's retirement time; or on a very long-term interval (people trying to raise their 401k again by spending less). The only positive outlook is that this can convince paper holders that the Fed is strict and disciplined and ask them to trust the paper a little more.
The damage of the Covid liquidity package will be felt for years, if not decades.
By the way, since people are pulling money of their retirement accounts, this is new liquidity hitting the market or, essentially, inflation. The deflation, in this case, will happen at the people's retirement time; or on a very long-term interval (people trying to raise their 401k again by spending less). The only positive outlook is that this can convince paper holders that the Fed is strict and disciplined and ask them to trust the paper a little more.
The damage of the Covid liquidity package will be felt for years, if not decades.