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Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says

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economic uncertainty, Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says, Global Economic Report
Federal Reserve Chair Jerome Powell answered press questions on March 22, 2023.

Rate Hike Takes Place In Environment Of Uncertainty

March 22, 2023—Federal Reserve Chair Jerome Powell assured the public and press on Wednesday that the U.S. banking system is “strong, sound, and well capitalized.” His comment came less than two weeks after several banks, namely U.S.-based Signature Bank and Silicon Valley Bank and Swiss-based Credit Suisse, failed.

The Federal Reserve Committee announced today it is raising the federal funds rate to a range of 4.75-5 percent in light of persistently high inflation. Powell said the Fed would have to bring inflation down to 2 percent because “the costs of failing are much higher.”

The Fed’s decision follows a similar rate increase by the European Central Bank last week.

Meanwhile, credit and financial conditions are uncertain. Asked about a potential credit crunch during the press conference, Powell acknowledged that it is “guesswork at this point.”

Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says, Global Economic ReportCopyright secured by Digiprove © 2023 Patti Mohr
economic uncertainty, Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says, Global Economic Report

Patti Mohr

Patti Mohr is a U.S.-based journalist. She writes about global diplomacy, economics, and infringements on individual freedom. Patti is the founder of the Global Economic Report. Her goal is to elevate journalistic principles and share the pursuit of truth in concert with others.

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