¡°I do not see any 5pervasive problems in our banking system.¡±

They say the 6volatility in finance isn¡¯t linked to 7insolvency, or assets that are difficult to value, like it was in 2008. Instead, the concern is, in part, over 8uninsured deposits and long-term 9treasury bonds that have 10crumbled in value.

¡°I do think fear is, is the big problem now.¡±

Quick action from the Federal Government is 11momentarily relieving those worries. But many banks, especially smaller lenders, are 12facing pressure from continued interest rate hikes by the US Federal Reserve.

¡°The question is how persistent and how much more serious, if at all, will that 13instability be?¡±

Still the economy remains hot. And the 14consumer price index for February, out Tuesday, reveals inflation is cooling, but still triple the Fed¡¯s target. Now, the Fed is at a 15crossroads.

¡°They should just pause, take a look around.¡±

Though Moody¡¯s says America¡¯s banking system is generally healthy, that sector, and the economy, are 16teetering on the edge as the 17central bank tries to keep everything in balance.