The Biden administration is responsible for three of the four largest bank failures in U.S. history, creating a bad incentive for private banks to acquire or bail out failing institutions.
Experts warn that the Federal Reserve’s interest rate regime could cause additional problems across the sector.
Interest rate hikes are largely blamed for the bank failures. The Fed had to take these actions because of the government’s spending spree after COVID, leading to inflation rising to 9%.
Private banks may become less willing to acquire or bail out failing institutions because of the precedent set by government bailout packages.
The government must take responsibility for its actions and create a consistent strategy for the financial market. It’s time for the government to learn to balance its spending with responsible financial policies to prevent further financial instability.
The banking system is at risk, and the government must strengthen the rules for banks to protect American jobs and small businesses.
Source Fox News