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Fed Walks Tightrope Between Inflation and Bank Turmoil—but for How Long?
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The Federal Reserve is responsible for the financial system and the macroeconomy. In theory, these are different jobs calling for different tools.
The Fed is trying to stay faithful to that separation of roles. On Wednesday, it continued its campaign to slow the economy and bring down too-high inflation, with a quarter-percentage-point increase in interest rates and a forecast of one more. Meanwhile, though, it has been lending generously to banks through its discount window to contain the damage caused by the failure of Silicon Valley Bank two weeks ago.
Read more on wsj.comAbout this in other media
Fed Walks Tightrope Between Inflation and Bank Turmoil—but for How Long? wsj.com /1 year ago
Fed’s Barr Says Silicon Valley Bank Failed Because It Didn’t Address Clear Risks wsj.com /1 year ago
Fed Walks Tightrope Between Inflation and Bank Turmoil—but for How Long? wsj.com /1 year ago
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