Why the Fed Raised Interest Rates Amidst a Banking Crisis
The Journal.
The Wall Street Journal
4.2 • 5.8K Ratings
🗓️ 23 March 2023
⏱️ 15 minutes
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| 0:00.0 | The Federal Reserve meets eight times a year to decide whether to adjust interest rates. |
| 0:11.4 | And at each of the last eight meetings, the Fed has raised interest rates in hopes of |
| 0:16.3 | bringing down inflation. |
| 0:18.4 | But heading into the Fed's meeting this week, no one was quite sure what the Fed was |
| 0:23.0 | going to do. |
| 0:24.4 | Raise rates again, or finally step on the brakes. |
| 0:28.5 | Here's our colleague, Nick Timmeros. |
| 0:30.2 | I've covered the Fed for the Wall Street Journal for six years. |
| 0:33.9 | And we've never had a situation like this one where the decision was so up in the air |
| 0:40.4 | bleeding right into the meeting. |
| 0:43.2 | We are expecting another decision from the Federal Reserve Wednesday on interest rates. |
| 0:48.1 | Federal Reserve faces a tough decision today about whether to continue raising interest |
| 0:52.6 | rates. |
| 0:53.6 | This historic day, just a few minutes now, from the biggest Fed decision on interest rates |
| 0:57.2 | in some year. |
| 0:58.2 | The most important Fed decision in recent memory now, less than 15 minutes away. |
| 1:04.7 | The reason there was so much suspense around this meeting is because the Fed is now dealing |
| 1:09.1 | with a new problem. |
| 1:11.4 | They aren't just fighting inflation anymore. |
| 1:13.2 | They're also fighting a banking crisis after two banks collapsed and others continue |
| 1:18.2 | to face pressure. |
| 1:20.2 | So the Fed has two problems on its hands, inflation and a banking crisis, which one is worse? |
... |
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