Silicon Valley Bank, Interest Rates & WIFIA

By John Ryan

Rapidly rising interest rates were a primary cause of Silicon Valley Bank’s collapse. Its multiple consequences will almost certainly mark the start of an extended period of interest rate volatility. The Federal Reserve is steering a narrow course between taming inflation and inflicting economic damage.  That’s not easy in an increasingly unpredictable economic, social, and geopolitical environment, as SVB’s sudden meltdown shows. The ride is not likely to be smooth.