Kevin McCarthy: Biden’s ‘Failed’ Fiscal Policies, Rising Interest Rates Led to Silicon Valley Bank Crisis

House Speaker Kevin McCarthy (R-CA) said during a House Republican Conference call on Monday night that President Joe Biden’s “failed” fiscal policies and rising interest rates led to the collapse of Silicon Valley Bank, according to a report.

The House Republican Conference held a private call with McCarthy, House Financial Services Committee chairman Rep. Patrick McHenry (R-NC), and Rep. French Hill (R-AR).

McHenry said that Silicon Valley Bank’s collapse was the result of “current social media meets the bank rush scene in ‘It’s a Wonderful Life.’”

Punchbowl News continued:

McHenry also argued that bank management’s pushed for SVB to grow too quickly, and the assets it held were a poor fit for a rising interest rate environment.

Hill, chair of the House Financial Services subcommittee on digital assets, blamed SVB’s failure on a lack of oversight from the San Francisco Fed office. That complaint was echoed by Rep. Andy Barr (R-Ky), chair of the financial institutions and monetary policy subcommittee on Financial Services.

In an interview late Monday night, McHenry said there was not an immediate need for legislation to resolve the banking crisis.

“They currently have the tools, and they‘ve used them appropriately to resolve two banks,” McHenry said in an interview with Punchbowl News. “They acted swiftly and boldly, and I’ve told them more than once that bold action I will absolutely support if it is in the interest of the financial system and in the interest of the American people.”

Breitbart News Economics Editor John Carney pointed out in the Breitbart Business Digest that a research paper from the New York Fed found that increased demand accounts for two-thirds of inflation and that fiscal stimulus was responsible for half or more of the increase in demand.

“The Fed accommodated the Biden administration’s reckless fiscal policy by holding interest rates near zero even after the economy had begun to recover from the pandemic and lockdowns. Massive quantitative easing held down bond yields not just for Treasuries but for mortgage-backed securities as well,” Carney noted.