The failure of Silicon Valley Bank, was the result of a hike in US interest rates and the consequent impact on the value of long dated securities. More of this may happen and puts the Federal Reserve in a bind. On the one hand it needs to raise rates to curb inflation. On the other, higher rates destroy the balance sheets of banks as their asset books begin to crumble with falling bond prices. This could trigger a collapse of the banking system and jam financial markets. A contagion could spread across international borders.