News Digest: Fed raises interest rates by a quarter-point
March 23, 2023
As expected, the Fed extended its year-long battle against inflationary pressures with yet another hike to its key interest rates. The quarter-point raise comes at a time when industry, already bearing high borrowing costs, is gripped by the turmoil in the banking system.
However, Fed Chair Jerome Powell sought to reassure his country that their money would be safe in the banks as analysts feared that the collapse of the Silicon Valley Bank and others could take the form of a nation-wide or even global pandemic, says a report.
While giving his word on protecting depositor interest, Powell spelt out that further rate increases could be on the cards as the Fed’s battle against high inflation was far from over. There was, however, a hint that there may not be many more of these rate hikes and asked banks to curtail their own lending and conserve cash.