![]() ![]() Banking Wanes After SVB Panic How To Protect Your Money From a Bank Collapse Pro Take: Banking Crisis Could Lend Fed a Hand in Inflation Fight By Bob Fernandez Backing of SVB Companies Whose Deposits in Silicon Valley Bank Were Just Freed Investor Anxiety Hits a Fever Pitch After Silicon Valley Bank Collapse Banking Crisis Powers Historic Bond Rally SVB's Collapse Shows the Yield Curve Is Always Right Asian Startups' Confidence in U.S. President Biden on Monday stressed steps taken to limit the fallout from the collapse of Silicon Valley Bank and bolster confidence in the financial system, while some lawmakers called for re-examining rules for midsize banks.įDIC Planning Another Silicon Valley Bank Auction Silicon Valley Firms Gird for Change After U.S. International policy makers shifted into firefighting mode as investors fretted about possible contagion from bank failures in the U.S.-and bet central banks could slow or reverse interest-rate increases to avert wider instability.īiden Says Banking System Is Safe After Silicon Valley Bank Collapse Bank Collapses Add to Pressure on Global Central Banks The situation could force Fed Chair Jerome Powell and his colleagues into choosing what problem demands the central bank's top focus. A sharp selloff in regional bank stocks Monday following the collapse of Silicon Valley Bank and Signature Bank risks pushing the Fed uncomfortably close to the one place it wanted to avoid over the past year: resolving a financial-stability trauma at the same time it fights high inflation. A big surprise over the past year had been that nothing broke. There is a saying that the Federal Reserve raises interest rates until something breaks. ![]() Top News Banking Crisis Calls Fed Interest-Rate Path Into Question But with the collapse of Silicon Valley Bank, the Fed may move more cautiously to assess the state of the financial system. Recent signs of a strong labor market and improving consumer spending raised the possibility that the Fed could raise its benchmark interest rate by a half-percentage-point at its March 21-22 meeting. It's not clear whether a crisis has been averted yet." Today, the Labor Department releases its consumer-price index report for February, giving the Fed critical data for a rate decision at its meeting next week. As Diane Swonk, chief economist at KPMG, puts it, "We've always said the one thing that could derail the Fed's tightening would be a financial crisis. Federal Reserve officials may need to choose between staying focused on fighting inflation with their interest-rate raising campaign or turning their attention to any turmoil that might ripple through the financial system following the collapse of Silicon Valley Bank. CPI Report Due Out Today By James Christie Silicon Valley Bank Fallout Might Supplant Inflation as Fed's Priority U.S. ![]()
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