The Federal Reserve has left interest rates unchanged, citing strong economic growth and a strong jobs market. Federal Reserve Chairman Jerome Powell noted that the central bank is committed to using all of its tools to keep inflation in check and ensure that the economy remains strong. The Fed is open to additional rate hikes should inflation quicken in coming months.
Posts tagged as “the Federal Reserve’”
The Federal Reserve has warned banks to be more conservative in their lending practices following the failure of three of the nation’s 30 largest banks in the last two months. Jerome Powell raised interest rates by 0.25% to a target range between 5.00% and 5.25%. PacWest Bancorp, a $44 billion bank, is now considering its strategic options, including a possible sale, a breakup, or trying to raise capital.
The collapse of Silicon Valley Bank has sent shockwaves through the financial world, with Senate Republicans denying the bank deregulation bill they passed in 2018 had anything to do with it. The Federal Reserve’s interest-rate hikes have been blamed for the bank run, and the Senate Banking Committee has written a bill that could shape the federal response. Experts suggest the whole debacle could have been avoided if the regulators had stepped in, but the exact cause of the bank’s collapse remains unclear.
Senate Majority Leader Chuck Schumer and Rep. Maxine Waters have both rid themselves of campaign contributions related to the Silicon Valley Bank collapse, which has raised questions about the role of Congress in the financial crisis. The 2018 law intended to provide relief to smaller banks was interpreted generously by the Federal Reserve, and Congress may take further action to ensure banks are held to a higher standard of oversight and safety.
Treasury Secretary Janet Yellen made a surprise visit to Ukraine to emphasize the US commitment to supporting Kyiv in the midst of its ongoing war with Russia. During her visit, Yellen discussed the US's efforts to hold Russia accountable, as well as the Federal Reserve's efforts to bring down inflation while maintaining a strong labor market. She also discussed the US's economic assistance to Ukraine, which has totaled $14 billion since the war began.