03/17/2023
After the closure of Silicon Valley Bank (SVB) what happens next? 🤔
Credibility is everything to the Federal Reserve, but that credibility will be tested soon. Here's what you need to know:
💬 Fed Chair Powell confidently told Wall Street to prepare for a 25-basis point increase in short-term rates in March.
⚡2022's rapid rise in interest rates continues to be a stressor on the banking system.
💪The Federal Deposit Insurance Corporation (FDIC) has taken control of both Silicon Valley Bank (SVB) and Signature Bank (SB).
📣 The U.S. government has already approved plans to safeguard depositors and financial institutions affected by the closing of both SVB and SB.
With this in mind, it may be best to prepare for more market volatility until the Fed can provide further guidance leading up to its two-day meeting.
