From a long-term perspective, the current threat to the US banking industry may still lie in the Fed's tightening policy.
What still worries many people in the industry is that the crisis in the banking industry did not stop the Federal Reserve from raising interest rates immediately last week. Federal Reserve Chairman Powell even reiterated that he will not cut interest rates within this year. Further interest rate hikes by the Federal Reserve will undoubtedly further increase the pressure on the US banking industry, and the asset side will face more book losses.
