Raising rates to fight inflation involves a time lag so current efforts to bring down prices won’t start having an impact until the next election is approaching.
A recession-free landing for the Fed may be harder now.
AP Photo/Alex Brandon
The Fed raised rates by a quarter-point – less aggressive than had been expected before the current banking crisis, but signaling inflation is still its focus.
Decision time: Jerome Powell, chair of the Federal Reserve.
The Photo Access/Alamy
The banking crisis has been caused by the interest rate rises, and further hikes were supposed to be a no no.
The U.S. Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on March 10, 2023, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
(AP Photo/Jeff Chiu)
The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.
Signature Bank collapsed at lightning speed.
AP Photo/Yuki Iwamura
Lenders face a lot of risks, but two of them – interest rate and liquidity – were the main drivers of the sudden and rapid failure of Silicon Valley Bank and Signature Bank. That’s why more trouble may be ahead for the banking sector.
Reserve Bank of Australia governor Philip Lowe is unrepentant about the prospect of further interest-rate rises. In fact, he says there’s a risk the bank is not doing enough.
The Reserve Bank of Australia tips economic growth to slow, inflation to remain high, spending to stagnate, unemployment to increase and real wages to fall further.
Markets reacted positively to Fed Chair Powell’s acknowledging “disinflation” is happening.
AP Photo/Seth Wenig
The US spent $213 billion paying interest on the national debt in the fourth quarter of 2022 as the Fed jacked up borrowing costs at an unprecedented pace.
Calculating the cost of living in the country.
Ariel Skelley/Getty Images
The rising cost of living doesn’t hit all Americans equally. Yet the benchmark figure for charting the rising cost of living excludes people in rural areas.