Powell admits Fed's confusion over SVB collapse and calls for regulatory review.
Federal Reserve Chairman Jerome Powell has admitted that the regulator was caught off guard by the sudden collapse of Silicon Valley Bank (SVB), despite it being under their watch. The Federal Reserve has launched an internal investigation to look into the events surrounding the failure of SVB and how the Fed "supervised and regulated" the bank. SVB's collapse has been linked to the Federal Reserve's successive interest rate hikes that have eroded its long-term bonds. The news has U.S. Senator Elizabeth Warren frustrated with Powell, who has now raised interest rates nine consecutive times to 5%.