The Fed: We did not surprise the markets by raising interest rates
Federal Reserve Vice Chairman Michael Barr confirmed that US interest rate decisions will be taken on a meeting-by-meeting basis, taking into consideration financial conditions along with other factors.
Barr blamed bank executives and regulators for the banking crisis, pointing out that the Fed had previously hinted at large interest rate increases and did not surprise the markets.
The Federal Reserve raised rates at its last meeting for the ninth consecutive meeting, by 0.25%, to the highest level since 2007.
Investment bank BlackRock has predicted the Fed will continue to raise interest rates even though traders are betting otherwise.
Federal Reserve Chairman Jerome Powell said the collapse of the Silicon Valley bank and the turmoil in the banking system it created “will likely lead to tougher credit conditions for households and businesses, which in turn will affect economic outcomes.”