Bank failures may cause lending reduction but inflation remains well above 2% target
Stubbornness of high inflation divides Federal Reserve on managing interest rates
Rhys Mendes will become Bank of Canada deputy governor in July while Biden has made two Federal Reserve nominations
Tighter credit standards are expected to be followed by a reduction in lending
The Fed describes the banking system as 'sound and resilient' but notes the impact of a pullback in bank lending remains uncertain
Officials want to see inflation decline consistently before considering major policy shifts
SVB “remained well-rated, even as conditions deteriorated,” central bank report says
Inflation slowed to 4.2% but much of that reflects lower gas prices
Inflation still above 2% target “so monetary policy needs to be tightened further,” board member Waller said
Mild U.S. recession forecast to follow pullback in consumer, business loans