The Fed already had a tough inflation fight. Now, it must deal with banks collapsing

A security guard at Silicon Valley Bank monitors a line of people outside the office in Santa Clara, Calif., on March 13, 2023. The Fed will now need to factor in the impact of the collapse of the lender, along with Signature Bank, as it makes its next decision on interest rates. (Justin Sullivan/Getty Images)

The Federal Reserve's fight against inflation just got harder.

The high-profile collapse of two regional banks in recent days has sparked new fears about the country's banking system and raised questions about how much higher the Fed should push interest rates in its effort to curb prices.