While this week fortunately seems to have been relatively free from headline-grabbing bank failures, the stress in the system unfortunately has not entirely disappeared. Banks are still under pressure, and it is too soon to declare that we are out of the woods just yet.

In this Economics Weekly, we highlight the four key problems in the banking system, how these issues are being addressed, what it means for the Fed, and what credit markets are telling us about their view of the situation.

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Richard de Chazal, CFA, is a London-based macroeconomist covering the U.S. economy and financial markets.