Last week Federal Reserve Chairman Jerome Powell spent two days on Capitol Hill, fielding countless questions from members of Congress about monetary policy. Nowhere in that exercise in happy-talk and obfuscation did anyone mention the possibility of a banking collapse that in less than one week would delegitimize the entire exercise. There are some calamities that arise without warning, like tsunamis or World War I, but the sudden collapse of Silicon Valley Bank, and the government’s over-the-top reaction to it, should have been as predictable as February snow in Buffalo. While many are arguing that the collapse of SVB is...