Two large U.S. bank failures and the takeover of another large global bank weakened confidence in the global banking system, but central banks and governments stepped in to bolster confidence. As soon as these events occurred, many believed the Fed would have to stop raising rates and would pivot to support the economy. However, the Fed proceeded with another rate hike last week as it firmly believes its top priority is to bring inflation down. Fed Chairman Powell has often referred to the policy actions of the 1970s during his press conferences. In this short video, we look back at the 1970s for a little bit of a history lesson as to why the Fed may likely stay aggressive in its current fight against inflation even as economic risks rise.
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Watch here: https://youtu.be/tYXFQPpZoh8?si=18rlueZbt6aDhfMa
