Webinar: The trade off between price stability and financial stability
May 25, 2023
The US Federal Reserve has been on a tightening campaign to fight inflation since March 2022. On May 3rd, 2023, the monetary policy committee delivered its 10th rate hike by raising its benchmark federal funds rate by another 25 basis points, now at 5%-5.25%.
Inflation remains the Fed’s main concern, but following the collapse of three regional banks not too long ago, do we have reason to believe that additional policy firming is appropriate? Are there other sources of fragility in the financial system including commercial real estate? Should higher rates for longer remain our base case for at least another year? And whither the US debt ceiling...