'Big Short' investor Steve Eisman says it'll be bad news for stocks if the banking crisis causes the Fed to pause: 'You should be scared'

• Investors should be worried if the Federal Reserve doesn't raise interest rates next week, according to Steve Eisman.
• "If the Fed is scared, you should be scared," the "Big Short" investor told CNBC.
• Traders upped their bets on a Fed pause after the US's regional banking crisis rocked markets.

Investors should start worrying if the US regional banking crisis forces the Federal Reserve to halt its interest-rate hiking campaign next week, Steve Eisman has warned.

The "Big Short" investor said Wednesday that it'd be a bad sign for markets if the central bank chooses not to raise the cost of borrowing – rather than bringing in the 25-basis-point hike that traders are expecting – next week.