Federal Reserve Chair Jerome Powell and the rest of the Fed are not looking so great after three banks collapsed in the span of a week. What some people might forget is that the Fed is a key bank regulator, overseeing bank holding companies.
If you ask any bank regulator, they will probably tell you that one of their main goals is to not have a bank failure on their watch. They would especially not want to have the second-biggest (SVB Financial‘s Silicon Valley Bank) and the third-biggest (Signature Bank) bank failures in history happen on their watch. As a result of these bank failures, the Fed’s workload just got a whole lot bigger because not only does the agency still need to get inflation under control but it now needs to stabilize the banking system as well.
This post originally appeared at The Motley Fool.