Business View Magazine Apr-2023

9 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 4 FEDERAL RESERVE RAISES RATES AS IT JUGGLES FIGHTING INFLATIONWITH A BANKING CRISIS Source- Frontline, PBS.org , James O’Donnell, First Published March 22, 2023 The Federal Reserve announced on Wednesday that it would raise interest rates by a quarter- point, a signal the central bank is maintaining its focus on reducing inflation despite recent uncertainty in the banking sector. After announcing the decision, Fed Chair Jerome Powell said the Fed “did consider” a pause in rate increases given recent bank collapses, but that the latest data led to consensus that a hike was necessary. “We are committed to restoring price stability,” he said. Wednesday’s interest rate decision marks an important moment for the Federal Reserve, which has been caught between opposing forces in recent weeks. On one hand, the fight against inflation has yielded some results but is far from over, putting pressure on the Fed