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Banking crisis will 'help the Fed': Strategist

The chaos that swept through the banking and financial markets this week has left the Fed at a crossroads for its rate-hiking path. The central bank's next interest rate decision is only days away, and investors' rate hike predictions have drastically changed since the SVB collapse. Michael Antonelli, Baird Managing Director and Market Strategist, tells Yahoo Finance that the drama that ensued is only a "mini banking crisis" and is not unusual. He says that what's happening right now might actually be "helping the Fed." "It will send a deflationary impulse through the economy. Credit conditions will tighten, lending will tighten," he says. "This ultimately will help fight inflation maybe much more so than a rate hike." Big banks are showing their confidence in the U.S. economy, with 11 firms banding together to save First Republic Bank (FRC) with a $30 billion lifeline. Yet regional bank stocks continue their downward spiral, but Antonelli assures that "this is what markets do. They probe stress." It will continue until "this moment has passed." Yahoo Finance's Julie Hyman and Brad Smith spoke with Antonelli. Watch the interview here. Key Video Moments: 00:00:03: Comparing to history 00:01:30: Why regional banks are down