Scott Horsley

The Federal Reserve raised its benchmark interest rate by a quarter percentage-point in an effort to curb high inflation. Some had called for the Fed to wait after two recent bank failures.

The Federal Reserve will decide Wednesday whether to keep raising interest rates to combat high inflation. The decision has been clouded by recent turmoil in the banking system.

The Treasury Secretary said the administration is committed to protecting the U.S. banking system and customers who trust their money to it.

The Federal Reserve is facing a decision this week on whether to raise interest rates again to fight inflation or take a breather to avoid putting more stress on the banking system.

A look back on the past week in banking news, explained.

Treasury Secretary Janet Yellen says bank depositors can feel confident their money is safe. Yellen promised a thorough review of what went wrong at two regional banks that failed in the past week.

Financial markets are on edge, after problems at a big Swiss bank triggered fresh worries about the safety of the banking industry. This follows the collapse of two regional U.S. banks.

Inflation eased in February, but consumer prices are still up 6% from a year ago. The Fed is wrestling with how hard to crack down — a difficult calculation after the collapse of two regional banks.

Consumer prices in February were 6% higher than a year ago, as inflation continues to ease. The data comes just days after the collapse of two regional lenders is roiling the banking system.

The Fed will be watching closely Tuesday when the new report card on inflation is released. The Fed's efforts to combat inflation have been complicated by recent stresses in the banking industry.

President Biden spoke this morning about the government's efforts to protect the banking system, after two regional banks collapsed in recent days.

U.S. employers added 311,000 jobs in February, a modest slowdown from the month before. The jobs report will be closely studied by the Federal Reserve as policymakers try to battle inflation.

U.S. employers added 311,000 jobs in February, only a modest slowdown from the previous month, indicating the labor market remains hot. The unemployment rate rose to 3.6% from 3.4% in January.

January was a blockbuster month for job creation as the unemployment rate fell to its lowest level in more than 50 years. February's data is released Friday.

Speaking before the Senate Banking Committee, Powell warned the central bank may have to raise interest rates even more, sending stock markets sharply lower.

Federal Chairman Jerome Powell testifies before a Senate committee Tuesday morning. He'll likely be asked about the Fed's effort to curb inflation and how much higher interest rates are likely to go.

Former Federal Reserve official Lael Brainard started her new job at the White House this past week. She'll be running the National Economic Council — a clearinghouse for administration policy.

Americans began the new year with a spending spree, but businesses are not sure how long it can last. There's a lot riding on the answer, since consumer spending is the backbone of the U.S. economy.

Consumers began 2023 with a surprisingly strong spending spree, but businesses aren't sure it will last. People's spending will play a big role in shaping the economic outlook and future of inflation.

Inflation cooled only slightly last month as the cost of housing, food and gas rose. Consumer prices in January were 6.4%, compared to a 6.5% inflation rate the month before.