A trader works on the floor of the New York Stock Exchange (NYSE) in New York on Monday, Sept. 20, 2021. The Silicon Valley Bank situtation is a "timely reminder" that when the Fed is focused on reining in inflation with interest rate hikes "it often ends up breaking things," one economist said Friday.

Michael Nagle/Bloomberg

Traders are steeling themselves for the risk of more turbulence after the biggest U.S. bank collapse since the 2008 financial crisis sent shockwaves through markets. 

The unravelling of SVB Financial Group's Silicon Valley Bank was driven in large part by the fallout from higher U.S. interest rates, prompting questions about whether other institutions might also be at risk as investors debate just how much further the U.S. central bank is likely to tighten policy. Meanwhile, the outlook for the economy — and likely policy responses to it — remain in flux.

Source : [Fed's heavy hand needs stopping as SVB becomes fatal victim of aggressive hikes](www.investing.com/news/economy/feds-heavy-hand-needs-stopping-as-svb-becomes-fatal-victim-of-aggressive-hikes-3028148) by Investing.com - 41Economy News by Investing.com / March 11, 2023