Fed Rate Pivot Is Back in Play
Markets are predicting a change in the course of interest rates now that there is trouble brewing in the banking sector.
What the SVB fallout means for the Fed.
Photographer: NOAH BERGER/AFP via Getty Images
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The world’s financial system has returned into the valley of the fear of death. Or, less melodramatically, Silicon Valley Bank has failed, the biggest US lender to do so since Washington Mutual collapsed in the aftermath of the Lehman Brothers bankruptcy in 2008. Sunday brought news that Signature Bank in New York had also been forced to close. Suddenly, it feels like we’ve been catapulted into an obscene combination of the dot-com bubble and the global financial crisis. There were many weekends spent waiting to find out how regulators resolved the fate of a failing bank back in 2008; it’s not great to return to them.