In a news conference Wednesday, the Federal Reserve announced it was raising interest rates by a quarter percent, continuing its effort to curb inflation.
Some wondered whether the Fed would raise interest rates given that three U.S. lenders have failed in the past few weeks. The collapse of Silicon Valley Bank, which was the largest bank failure since 2008, and the second largest in U.S. history, impacted not just companies in San Francisco, but impacted startups and tech companies across the country, including here in Ohio.
Add in two other U.S. lenders collapsing, including Signature Bank and Silvergate Bank, and the Swiss investment bank, Credit Suisse, and there is growing concern about the stability of the banking sector, and the economy as a whole.
Federal Reserve Chair Jerome Powell addressed these developments in a speech. He said, "Our banking system is sound and resilient." Powell added that the Fed is prepared to use all of its tools to keep the banking system safe and sound, though it did mention the extent of these crashes on the economy is uncertain.
On Thursday's "Sound of Ideas," we'll start the show by talking about the state of the banking sector and how the perception of a banking crisis is impacting the economy.
Later in the hour, we'll feature another film at this year's Cleveland International Film Festival, about mental health. And, we'll play the next installment of our music podcast, "Shuffle."
GUESTS:
- Kevin Jacques, Ph.D., Chair, Finance and Analytics & Professor, Baldwin Wallace University
- Ray Leach, CEO, Jumpstart
- Nonie Shiverick, Director of "Dark Water"; Founder of "One Eye Wilde"
- Amanda Rabinowitz, Host of "All Things Considered" and "Shuffle"
