Such a move would increase the ability of banks to keep up with demands from depositors to withdraw, without having to book losses by selling bonds and other assets that have deteriorated in value amid interest-rate increases — the dynamic that caused SVB to collapse on Friday. 

During his second day of congressional testimony this week, the Federal Reserve chair faced several questions about the Consumer Financial Protection Bureau's embattled funding mechanism.

Bond traders boosted bets that the Federal Reserve may re-accelerate the pace of rate increases at the policy meeting later this month.

"The committee is strongly committed to returning inflation to its 2% objective," the Fed said in its semi-annual report to Congress released Friday.

But even if plowing back into Treasuries proves to be a winning trade, sticking with it won't be for the faint of heart. 

Cleveland Fed president says the central bank is still raising rates to a level that's high enough to bring inflation down to the target.

The markets are looking for a Fed pivot, but central bankers continue to say more hikes are coming and rates will stay higher longer. OANDA's Ed Moya joins us after the meeting to give a comprehensive look at what the Fed signals for the future.

The central bank has raised rates aggressively for nearly a year, but experts believe the hiking cycle is nearly over.

The Federal Reserve Chair urged Congress to raise the debt ceiling, warning the impacts of not doing so could go beyond the central bank's ability to mitigate.

The Federal Reserve slowed its drive to rein in inflation and said further interest-rate hikes are in store as officials debate when to end their most aggressive tightening of credit in four decades.