The Federal Reserve is still playing inflation fighter despite investor focus on a banking crisis that has taken down the likes of Silicon Valley Bank, Signature Bank (SBNY), and Credit Suisse (CS).
The Fed lifted the target range for its benchmark interest rate by 25 basis points on Wednesday, with Chairman Jerome Powell suggesting to reporters that rates could have been hiked by 50 basis points if not for pressures in the banking system.
Powell also took rate cuts off the table for the time being.
“Inflation remains too high and the labor market continues to be very tight,” Powell said. “My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal.”
Source : Fed’s recent interest rate hike: Wall Street reacts and Powell speaks out