The Federal Reserve’s dramatic action over the weekend to stem the fallout from the Silicon Valley bank collapse appears to have largely shielded the US economy for now, although broader disentanglement could jeopardize expansion.
The demise of some regional banks doesn’t tell the full story of the banking sector, which remains strong and ready to weather adversity, economists say. However, contagion that prompts banks to sharply tighten lending standards or causes consumers to become more cautious could deepen recession concerns.
“If it’s pretty limited in terms of just a few banks that have gone under – like…
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