Silicon Valley Bank's collapse may affect your interest rate
When inflation is high, the Federal Reserve has historically raised interest rates. But the recent failures of banks like Silicon Valley Bank have sparked worries about the stability of our banking system.
Headlines From The Times · Nicolas Perez, David Toledo Diaz, Don Lee, Kasia Broussalian, Gustavo Arellano, Mark Nieto, Jazmín Aguilera, Ashlea Brown, Denise Guerra, Mario Diaz, Roberto Reyes, Helen Li, Heba Elorbany, Mike Heflin, Shani O. Hilton
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Show Notes
When inflation is high, the Federal Reserve has historically raised interest rates. But the recent failures of banks like Silicon Valley Bank have sparked worries about the stability of our banking system. Now the feds must weigh whether the banking system could withstand the turmoil that raising interest rates could bring. To get inside the mind of Fed chair Jerome Powell, we look to a previous era of high inflation, the late 1970s and early ‘80s, and the decisions of then Fed chairs Arthur Burns and Paul Volcker.
Today, we talk about what's next. Read the full transcript here.
Host: Gustavo Arellano
Guests: L.A. Times economics reporter Don Lee
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