US banking collapses muddy monetary policy outlook

Bank failures raise question of whether Fed can maintain stability while tightening policy

US Federal Reserve interior
Photo: Flickr/US government/Britt Leckman

After the second-largest bank failure in US history, the Federal Reserve’s monetary policy path is suddenly unclear.

Silicon Valley Bank collapsed on March 10. Two other smaller lenders also failed in the past week. That has led to concerns that tighter interest rates could trigger further insolvencies.

However, the media blackout period for Fed officials begins the second Saturday preceding a Federal Open Market Committee (FOMC) meeting and generally ends the Thursday following its meeting

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