The market is facing new headwinds with the collapse of SVB — but there is a silver lining

FAN Editor

Federal Reserve Chair Jerome H. Powell testifies before a U.S. Senate Banking, Housing, and Urban Affairs Committee hearing on “The Semiannual Monetary Policy Report to the Congress” on Capitol Hill in Washington, U.S., March 7, 2023. 

Kevin Lamarque | Reuters

The failures of Silicon Valley Bank and Signature Bank in less than a week have rattled financial markets and injected a new dose of uncertainty into an already volatile global economy, while calling into question the Federal Reserve’s aggressive interest-rate-hike strategy. We share investors’ unease, but it’s also becoming increasingly clear that inflation will continue to decelerate in the coming months — potentially allowing the Fed to slow rate rises and give the nascent bull market a chance to soar.

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