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Breakingviews – Bank runs don’t change Fed’s focus on high prices
Breakingviews - Bank runs don’t change Fed’s focus on high prices,The past two weeks have been a roller-coaster ride for interest rate forecasts. At the start of the month, most investors expected the U.S. Federal Reserve to raise rates by another 25 basis points later in March, bringing them to a range of 4.75% to 5%. Silicon Valley Bank’s collapse turned that harmony into discord. Some economists now expect Fed chair Jerome Powell to pause hikes, or even cut rates, to relieve stress on banks. With inflation still running too hot, such a reversal would do more harm than good.

Breakingviews – Bank runs don’t change Fed’s focus on high prices

The past two weeks have been a roller-coaster ride for interest rate forecasts. At the start of the month, most investors expected the U.S. Federal Reserve to raise rates by another 25 basis points later in March, bringing them to a range of 4.75% to 5%. Silicon Valley Bank’s collapse turned that harmony into discord. Some economists now expect Fed chair Jerome Powell to pause hikes, or even cut rates, to relieve stress on banks. With inflation still running too hot, such a reversal would do more harm than good.