- Federal Reserve faces complicated decision on interest rate rises amidst strong inflation data.
- Central bank must balance taming price pressures with stabilizing financial system after bank failures.
- Recent inflation data shows 0.5% rise in "core" consumer price growth in February.
- SVB's collapse has fundamentally changed the policy outlook, raising concerns over level of interest rates system can withstand.
- Economists say Fed must also contend with broader questions of how financial instability will affect demand and economic activity.
Federal Reserve’s dilemma over interest rate rises further complicated by strong inflation data
US central bank must thread needle between taming price pressures and stabilising financial system
Colby Smith
