The Interconnectedness of Banking and Confidence in the Current Economic Climate

The collapse of Silicon Valley Bank (SVB) and Signature Bank has raised concerns about how the Federal Reserve will proceed with interest rate hikes to curb inflation. Goldman Sachs no longer believes the Fed will raise interest rates at its next meeting. SVB's failure could be attributed to the Fed's recent interest rate hikes and the bank's own business decisions. The closures of SVB and Signature Bank have spread fears about the failure of the entire banking system. The FDIC insures up to $250,000 per depositor, per insured bank, for each account in a covered category.