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.’

The most pressure is on the regional banks a couple steps below in size of the massive, ‘too-big-to-fail’ banks that helped take down the economy in 2007 and 2008.

It is the central bank’s 6th rate hike this year – a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.