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To avert a financial crisis, the Fed seems poised to keep interest rates unchanged

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    • Observers say the Fed will have to walk a “tightrope” in the coming months, balanced precariously between the possibility of a credit crunch and a major recession on the one side, and out-of-control inflation on the other. 
    • Observers say the Fed will have to walk a “tightrope” in the coming months, balanced precariously between the possibility of a credit crunch and a major recession on the one side, and out-of-control inflation on the other.  PHOTO: AFP

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    Rob Curran

    Published Tue, Mar 21, 2023 · 06:00 PM

    THE US Federal Reserve could try to shock the banking system back to life and avert a burgeoning financial crisis by holding interest rates steady at the end of its two-day meeting on Wednesday (Mar 22).

    Up till Mar 11, when the central bank’s media “blackout” ahead of this week’s meeting began, Fed chair Jerome Powell and other senior officials had repeatedly guaranteed a continuation of their inflation-fighting campaign.

    But the world has changed a lot since then, in a way that brings back painful memories of the global financial crisis back in 2008.

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    credit suisseUBSUS Federal ReserveJerome Powell

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