carson block
Carson Block.
  • The Federal Reserve should have seen the regional banking turmoil coming, according to Carson Block.
  • "The risks were right under the noses of the Fed," the famed short-seller told Bloomberg Thursday.
  • Years of low interest-rates created "powder kegs of leverage", the Muddy Waters founder added.

The Federal Reserve fueled the turmoil at US regional banks by keeping borrowing costs low for years — and it should've seen the collapse of SVB Financial and other lenders coming, according to famed short-seller Carson Block.

"These risks were right under the noses of the Federal Reserve Board of Governors and the FOMC committee members," the Muddy Waters Research founder told Bloomberg TV on Thursday.