Steve Moore, a former Trump White House adviser and chief economist at FreedomWorks, has weighed in on the Silicon Valley Bank collapse and why the Biden regime’s spending is to blame for the crisis.

On Monday, President Joe Biden tried to reassure Americans that there was no major banking crisis and that they should “feel confident” in their banking system.

Appearing on Fox News later that day, Moore agreed with Biden’s statement but still warned of a looming crisis that could hit the U.S. economy. Speaking with Fox News host Harris Faulkner, he said, “The [banking] system is sound, but I do think you have a lot of major banks that are in some trouble. And SVB, the Silicon Valley Bank, may just be the tip of the iceberg here.”

The economist, who has previously criticized the Democrats for their spending policies, evaluated the likely cause of the SVB collapse. He attributed it to inflation as well as the over-borrowing and over-spending the federal government has engaged in under the leadership of the Biden administration.

Moore said,

“It’s not because there aren’t enough bank regulators, as Biden is trying to say. It’s because of the massive inflation and the trillions and trillions of dollars of borrowing that the federal government has done that has put our financial system in great jeopardy, in great peril.”

“You can’t just keep doing this month after month, year after year, borrowing trillions and trillions of dollars,” continued Moore. “And so what happened, because of the Biden spending and debt policies, is that not only did inflation go up, but interest rates have gone up.”

“[A]s you know, the Fed has had to raise interest rates eight or nine times, and they’re talking about more interest rate increases to come. And that’s caused a lot of financial problems for these big banks is the interest rates go up,” he added.

Moore also warned that the trillions of dollars of consumer and mortgage debt also put the nation’s banks at risk.