Bank Failures and Fighting Inflation

The collapse of Silicon Valley Bank and Signature Bank raised the specter of a broader financial and economic crisis. This seems to have been averted by the decision to ensure all deposits; but questions remain about banks’ risk-taking,

An episode of the EconoFact Chats podcast, hosted by EconoFact, titled "Bank Failures and Fighting Inflation" was published on March 19, 2023 and runs 32 minutes.

March 19, 2023 ·32m · EconoFact Chats

Summary

The collapse of Silicon Valley Bank and Signature Bank raised the specter of a broader financial and economic crisis. This seems to have been averted by the decision to ensure all deposits; but questions remain about banks’ risk-taking, the adequacy of regulation, and whether continuing interest rate hikes will further imperil the financial system. Moderating the rise in interest rates, however, counters the efforts to bring down inflation, which continues to be well above its target rate. Will the Federal Reserve recalibrate its efforts to tackling inflation? What do regulatory failures mean for future policies regarding banking supervision and oversight?  To discuss these issues Econofact Chats welcomes back Binyamin Applebaum of the New York Times, Scott Horsley of NPR, Greg Ip of the Wall Street Journal, and Heather Long of The Washington Post.

Episode Description