A hard job just got harder for the Federal Reserve after the biggest U.S. bank failure since 2008 overshadowed another strong payroll report.
Officials weighing if February’s jobs data boosted the case for a half-point rate hike this month must now also consider if the collapse of Silicon Valley Bank gives grounds for caution that they cannot ignore.
“The market and banking sector turmoil will be a strong argument in favor of 25 basis points,” said Stephen Stanley, chief U.S. economist for Santander U.S. Capital Markets.
