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
But core inflation was 5.6% in March
Barr anticipates higher capital, liquidity standards needed for American banks with more than $100B
Official nonetheless pledged that the Federal Reserve and other agencies would take whatever steps deemed necessary to protect the banking system
Inflation remains elevated, bank failures likely to “weigh on economic activity”
Most economists think the Fed will raise rates by a quarter-point on Wednesday
SVB was highly susceptible to depositors quickly withdrawing their money at the first sign of trouble
The Fed may get some unintentional help in its inflation fight from the aftereffects of the SVB collapse