We're here [bank failures] basically because we had a prolonged period of overly-loose monetary policy. When it came to adjusting monetary policy, the Fed did not act fast enough and then it had to hit on the breaks. And you've heard me say over and over again, when you hit the breaks, you risk both economic and financial accidents. And we've just lived through a financial accident.
It's important to stress that depositors should not worry. Your deposits are fine. And there is no need to move your deposits... Honestly, there is no risk to your deposits anymore.
It is almost impossible now to go back on unlimited deposit guarantee.
~ Mohamed El-Erian, CNBC
interview, 0:45 mark, March 13, 2023
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