How Will the Bank Crisis End?

Chief Investment Officer Chuck Lieberman discusses why Silicon Valley Bank failed and how that will affect the sector and market as a whole. Also, possible next moves for the Fed to mitigate risk in the bank sector.

What’s Happening to the Banks?

The Fed moves to contain fallout from the Silicon Valley Bank failure. Meanwhile, job growth continues to be strong, and there is little to suggest the Fed should pivot from their path of rate hikes.

Is the Economy Slowing Enough?

Strong employment and jobs growth reports from February dashed investors’ hopes for a pause to Fed rate hikes. While there are signs that economic growth is moderating, it is not slowing enough to expect the Fed to be able to pause rate hikes.

Volatility Is Not Going Away

The beginning of 2023 saw a rally in equities as investors forecasted the end of Fed rate hikes. After the most recent jobs report and the 2YR treasury note movement, those hopes have been dashed for the near future. This volatility in equity markets is very normal.