Recognition is growing that the immediate source of major financial problems now coming to the surface is the measures undertaken by the Fed to try to quell previous crises.
Economists expected inflation and rates to stay low for years. With Silicon Valley Bank’s implosion, Wall Street is starting to reckon with how wrong that prediction has proved.
Overall price increases at the consumer level eased slightly from January to February, but they still pointed to an elevated inflation rate that poses a challenge for the Federal Reserve at a delicate moment for the financial sector.