The Fed says the U.S. banking system is ‘sound and resilient,’ but warns that the financial upheaval stemming from the collapse of 2 major banks is ‘likely to result in tighter credit conditions’ and ‘weigh on economic activity, hiring and inflation.’

In the U.S., most of the attention has been on smaller and mid-sized banks on fears that falling trust could push their depositors to pull their money all at once.