BREAKING: The Federal Reserve is raising interest rates a quarter point, continuing its efforts to quash inflation.
on March 10 and of New York's Signature Bank two days later has spurred fear that worried depositors could rush to withdraw their money from other regional lenders, sparking a wider crisis.
In its statement, the Fed's rate-setting committee noted that banks' newfound caution would likely drag on the economy, writing,"Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain."
"The Committee remains highly attentive to inflation risks," the statement said, adding that the Fed was"strongly committed to returning inflation to its 2 percent objective." But the Fed also hinted it is prepared to pause further rate hikes depending on economic conditions, saying it"will closely monitor incoming information and assess the implications for monetary policy."
Fed Chair Jerome Powell is set to address reporters at 2:30 p.m. Eastern time, when he will offer his outlook on the economy.
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