(AmericanProsperity.com) – During a Monday appearance on Fox News, chief economist at FreedomWorks and former Trump White House adviser Steve Moore said that the financial system might be at risk, as the recent collapse of the Silicon Valley Bank (SVB) is just “the tip of the iceberg.” Moore also told host Harris Faulkner that the reason behind the financial problems that so many banks face is the Federal Reserve’s decision to raise interest rates, pointing out the Biden administration’s spending caused this.
Last Friday, the California Department of Financial Protection and Innovation shut down the SVB after suffering a stock crash of over 60 percent in premarket trading because of customers’ withdrawals and fears of a massive crisis across the US banking industry. The Silicon Valley tech lender mainly served high-risk startups struggling because of higher interest rates. While the bank wasn’t that famous, it was among the top 20 banks in the country, with $209 billion in total assets and $175 billion in total deposits by 2022.
In one moment of the interview, Moore told Faulkner that Americans need to understand that President Biden is lying when he says that the element that started this potential banking crisis is the small number of bank regulators. He explained that the real reason behind everything currently happening in the banking system is the “massive inflation” that the Biden administration’s failed policies have created, which has put the US financial system in “great jeopardy and great peril.”
Moore’s comments came a couple of hours after President Biden addressed the collapses of the SVB and the Signature Bank, asking people to keep trusting the American banking system and promising that government will hold accountable those responsible for the banks’ collapses. President Biden also said that every single customer of both banks will have access to their money, and taxpayers won’t be forced to bail out the SVB or the Signature Bank.
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