The Fed is putting the economy in jeopardy by not prioritizing the stability of the banking system, Moody's chief economist says

• The Fed is putting the economy at risk by not prioritizing bank stability, Moody's Mark Zandi said.
• He said the Fed's 25-basis-point rate hike added to tighter credit conditions at banks.
• "That puts the federal effective funds rate target closer to 6%," Zandi told CNBC

The Fed isn't prioritizing the stability of the US banking system – and that's putting the economy in jeopardy, according to Moody's chief economist Mark Zandi.

In an interview with CNBC on Thursday, estimated that tighter credit conditions since the collapse of Silicon Valley Bank are equivalent to two or three 25-basis-point interest rate hikes. On top of that, central bankers raised benchmark rates another 25-basis-points at their policy meeting Wednesday.