US Economy Shielded From SVB for Now But Spillovers Still a Risk

The Federal Reserve’s dramatic actions over the weekend to contain fallout from Silicon Valley Bank’s collapse seem to have largely shielded the US economy for now, though a broader unraveling risks jeopardizing the expansion.

The demise of a few regional banks doesn’t tell the whole story of the banking sector, which remains broadly strong and ready to handle adversity, economists say. However, contagion that prompts banks to severely tighten lending standards or causes consumers to become more guarded could well deepen recession concerns.

“If it’s fairly limited in terms of just a couple banks that have gone under — like ...