Ex Fed’s Quarles Says SVB Failure Not Due to Easier Bank Rules

Former Federal Reserve Vice Chair for Supervision Randal Quarles played down the role of looser rules in Silicon Valley Bank’s collapse and said he expects the Fed to raise rates a quarter point next week.

Speaking Tuesday evening in New York, he said financial stability concerns surrounding SVB’s failures undermine support for a 50 basis-point increase at the Fed’s March 21-22 meeting. He said a smaller move, followed by a policy pause, was the most likely outcome.