Post-SIVB failure, 3 likely lingering impacts: job gains slow (start-ups), bank capital costs rise (tighter FC) and biz/consumer confidence hurt (spend) = lowering trajectory of Fed hikes, +25bp or possibly pause.

The dominant news over the coming weeks will likely be the lightning fast failure then resolution of SVB Corp ($SIVB, aka Silicon Valley Bank) and the corresponding second order impacts. The FDIC/Fed took 3 actions: (i) made SIVB depositors whole; (ii) invoked systematic rule and shutdown Signature Bank and (iii) created a new liquidity facility enabling banks to access funds at par (not marked to market) to meet liquidity needs (link).

This action alone is likely to be perceived as construc...

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