SVB Collapse Puts Pressure on Fed's Tightening Plans

The collapse of Silicon Valley Bank and Signature Bank has given the Federal Reserve two reasons to hold off on raising interest rates at their upcoming meeting. However, strong economic data had previously led to plans to continue raising rates. Expectations for the Fed have been fluctuating this year, with early hopes for a quarter-point increase in March, followed by a hold, but a strong January employment report and inflation reports changed that.