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WSJ What’s News

Banking Crisis Throws Fed Rate Hike Plan Into Question

WSJ What’s News

The Wall Street Journal

News, Daily News

4.14.2K Ratings

🗓️ 13 March 2023

⏱️ 14 minutes

🧾️ Download transcript

Summary

P.M. Edition for March 13. There was a sharp selloff in regional bank stocks and bond prices rose, as investors fled to safe havens following the collapse of Silicon Valley Bank last week. President Biden is assuring Americans about the safety of the U.S. banking system. Reporter Andrew Ackerman says the financial turmoil is throwing a wild card into the Federal Reserve’s rate hike plans. Annmarie Fertoli hosts. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

The scientists of today are creating the next big thing.

0:04.6

On the Wall Street Journal's future of everything podcast, get an early listen to what tomorrow

0:08.9

has in store.

0:10.8

Find us wherever you get your podcasts.

0:20.8

Bank stocks are still being hit hard after the collapse of Silicon Valley bank on Friday,

0:25.8

and the turmoil is throwing the Federal Reserve's rate hike path into question.

0:29.6

If they have to stop raising rates because of financial stability concerns over the

0:34.6

health of these banks, what does that mean for inflation?

0:38.1

Does that just become more endemic or are they unable to successfully fight it?

0:43.0

Plus how dynamic pricing is infiltrating our everyday activities.

0:47.3

It's Monday March 13th.

0:48.7

I'm Amary for Tolley for the Wall Street Journal.

0:51.2

This is the PM edition of What's News, the top headlines and business stories that moved

0:55.5

the world today.

1:00.1

There was a sharp sell-off in regional bank stocks today following the collapse of Silicon

1:10.0

Valley bank and signature bank.

1:12.4

That pushes the Federal Reserve close to something it's wanted to avoid, fighting high inflation

1:16.7

at the same time as it's trying to resolve a financial stability trauma.

1:20.8

We will have much more on SVB, including the role of financial regulators and how the

1:25.1

banks collapse could impact the Federal Reserve's rate hike plans in just a few minutes.

1:29.6

But first, let's turn to markets with our reporter Gina Hebe.

1:33.1

So Gina, tell us what happened today.

...

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