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Do bank failures mean the Fed's hiking cycle is over?
- Financial Advice
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- 24.03.23
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Even though Silicon Valley Bank had unique vulnerabilities, its failure will likely tighten financial conditions and slow lending growth, despite government efforts to shore up confidence. All of this means the Fed needs to do less of the heavy lifting to get to the same result – tight financial conditions are slowing credit creation and will eventually slow inflation. As a result, the question is: is the Fed’s rate-hiking cycle over?