The failures of Silicon Valley Bank and Signature Bank seemed to be wake-up calls. The immediate question to many is what effect this might have on the Federal Reserve and decisions to change interest rates.

Just last week, in his semiannual testimony to Congress, Fed Chair Jerome Powell invoked the dual mandate of promoting maximum employment and stable prices — and no word of supporting asset prices.

"Fed Chair Jerome Powell used his semi-annual testimony to push back against financial markets as his comments were hawkish, noting that the terminal rate for the fed funds rate could be higher than previously anticipated," Oxford Economics said in an emailed note. "He noted that he isn't hesitant to increase the pace of rate hikes if the data on employment and inflation continue to come in stronger than anticipated."

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