Recent market behavior suggests a disconnect between the U.S. Federal Reserve’s stance and bank liquidity conditions. While the Fed signals tightening and cautious monetary policy, major U.S. banks appear flush with liquidity and expanding credit. Observers say this divergence could lead to friction in financial transmission, especially if lending and money market curves decouple. The tension raises questions about the potency of future rate moves and macro support in a bifurcated financial environment.