May 19, 2023

Federal Reserve Chair Jerome Powell said Friday that stresses in the banking sector could mean that interest rates won’t have to be as high to control inflation.

Speaking at a monetary conference in Washington, D.C., the central bank leader noted that Fed initiatives used to deal with problems at mid-sized banks have mostly halted worst-case scenarios from transpiring.

But he noted that the problems at Silicon Valley Bank and others could still reverberate through the economy.

Read more:

https://www.cnbc.com/2023/05/19/fed-chair-powell-says-rates-may-not-have-to-rise-as-much-as-expected-to-curb-inflation.html