The March 2023 bank failures (SVB, Signature) will tighten credit conditions for US households and businesses in 2023, weighing on demand, the labor market and inflation.
Partly right ●●●●●
“the events of the last two weeks are likely to result in some tightening credit conditions for households and businesses and thereby weigh on demand, on the labor market, and on inflation.”
- Said on
- 22 March 2023 · FOMC press conference a week after the Silicon Valley Bank and Signature Bank failures; inferred window to end-2023
- Source
- Transcript of Chair Powell's Press Conference, March 22, 2023 · Federal Reserve
- Should come true
- 2023
- How sure they sounded
- we also assess... are likely to
- Categories
- BankingEconomy
- Importance
- 3 of 5 · Concerned the macroeconomic fallout of the 2023 US regional bank crisis.
Outcome
Partly right
Credit did tighten: the Fed's April and July 2023 loan officer surveys showed banks tightening standards across business, CRE and household loans. But the predicted drag on demand was small, since real GDP grew 2.9% in 2023 and the labor market stayed strong. Partial is the cautious call.
- https://www.federalreserve.gov/data/sloos/sloos-202304.htm
- https://www.federalreserve.gov/data/sloos/sloos-202307.htm
- https://www.bea.gov/news/2025/gross-domestic-product-4th-quarter-and-year-2024-advance-estimate
History
- 2026-10-17 00:14:30 · created by claude
- 2026-10-17 00:14:30 · categorized by claude
- 2026-10-17 00:17:26 · scored by claude
- 2026-10-17 00:17:43 · categorized by claude