2 Question Tuesday – 03/14/2023 – Why Did Silicon Valley Bank Go Under & What Does This Mean For The Fed?

Welcome to 2 Question Tuesday. This week’s client submitted questions were:

  1. Why did Silicon Valley Bank go under?
  2. What does this mean for the Fed?

Phil, Mike, and Larry talk about why regulators closed Silicon Valley Bank on Friday and took control of its deposits in what is the largest U.S. bank failure since the global financial crisis 15 years ago, and the second-largest bank failure in U.S. history. They also discuss the closing of Signature Bank on Sunday, making it the third-largest bank failure. Then they evaluate what all this means for the Federal Reserve’s interest rate policy. Last week, the Fed said it will continue to aggressively raise rates to curb inflation. But the problems in the banking sector could change all that.

Submit your questions to question@2questiontuesday.com

As always, if you have any questions at any time, please feel free to call your adviser directly at (845) 691-4035.

Special guest host Lawrence Carrel’s books available available at Amazon.com