Fed's Daly Acknowledges Supervisory 'Slowness' in Silicon Valley Bank Failure

San Francisco Federal Reserve Bank President Mary Daly stated that the failure of Silicon Valley Bank (SVB) was due to regulators being too slow to take action. Daly emphasized that she does not have a supervising role in SVB but believes that other officials waited too long to address regulatory issues. The postmortem report on SVB's failure highlighted the problem of slowness in regulatory action. Daly clarified that supervision is a system-wide activity and that the responsibility for fixing regulatory issues lies with the Fed's Board of Governors. She also discussed the Fed's ongoing fight against inflation and the challenges of raising rates without causing a recession or allowing inflation to remain above the central bank's target. Other Fed officials also spoke about the need for rate hikes to combat inflation.