Federal Reserve Bank of Minneapolis President Neel Kashkari said it was premature to judge what impact the collapse of Silicon Valley Bank will have on the economy, but the Fed also needs to focus on lowering inflation.

“What’s unclear right now is how much of the banking stresses of the past few weeks is leading to a sustained credit crunch which would then slow down the US economy,” he told a townhall Thursday in St. Paul, Minnesota. “Banks on average have a lot of capital. The Federal Reserve and the other banking regulators are standing behind the banking system. So that should give us all confidence. It’s going to take us a while until we fully understand, are there more losses out there.”