Fed officials double down on rate rise decision citing high inflation

Fed officials defend decision to raise rates despite stress across US banking sector, citing concerns about elevated inflation. Benchmark yields decline, futures market prices out possibility of May rate rise.

March 26, 2023 . 6:13 AM

1 min read

Federal Reserve officials defend decision to raise rates for the second time in a row.
Officials cite concerns about elevated inflation despite stress across US banking sector.
Benchmark 10-year Treasury yields have declined by more than half a percentage point to 3.32 per cent since the collapse of Silicon Valley Bank.
Investors in futures market have fully priced out possibility of an additional quarter-point increase in May.
Fed chair Jay Powell acknowledges officials had considered pausing rate rises in light of banking turmoil, but ultimately an increase was "supported by a very strong consensus".