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Fed Walks Tightrope Between Inflation and Financial Instability—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.
In recent weeks, the Fed has tried to stay faithful to that separation of roles. When Silicon Valley Bank failed two weeks ago, the Fed sought to contain the damage by lending generously to other banks from its discount window. On Wednesday, though, 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.
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 Walks Tightrope Between Inflation and Bank Turmoil—but for How Long? 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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