The credit crunch caused by the banking turmoil may help the Fed's inflation fight, but it will hurt the economy and earnings, eToro strategist says

• A credit slowdown resulting from the banking turmoil will help the Fed's inflation fight but it will weigh on the economy and earnings, according to eToro's Ben Laidler.
• "I think the banks are gonna be doing the Fed's work for it," Laidler told Yahoo Finance.
• Deposit outflows and the fear of regulatory crackdowns are prompting banks to tighten lending standards, according to him. 

A credit slowdown resulting from the recent banking turmoil will help the Federal Reserve in its fight against inflation, but it will also slow the economy and earnings, according to eToro's global market strategist Ben Laidler. 

Banks will be lending less as they turn more risk-averse following last month's collapse of Silicon Valley Bank and Signature Bank - that, in combination with the Fed's ongoing monetary-tightening campaign, will lead to an economic slowdown, he said.