One side of our economic challenges can be solved by controlling inflation, which requires raising interest rates. The other side can be controlled by increasing liquidity in our banks, thereby increasing inflation. Some say the Fed will be choosing between generational inflation and another banking crisis in the days ahead.

Silicon Valley Bank (SVB), whose collapse last week has triggered a global banking crisis, donated over $73 million to the BLM movement.  

By: Alan S. Blinder –  wsj.com – March 15, 2023 But don’t succumb to Yogi Berra Syndrome and declare this déjà vu all over again. This isn’t a replay of 2008. Yes, the problems at SVB initially were characterized as small and contained, redolent of the original attitudes toward subprime mortgages in 2006-08. But this time around, it took the authorities...

Prices rose by 0.4 percent in February and core inflation was up 0.5 percent, the third consecutive month that it has increased.

The primary concern of the people who ran the Silicon Valley Bank (SVB) — the bank that just went bust — was not banking. Nor was it making money for the bank’s shareholders or safeguarding the funds of its depositors.

Trading was intermittently halted on at least 20 regional banks as the velocity of money forced regulators to intervene on Wall Street.

By The Editorial Board –  wsj.com – March 13, 2023 Perhaps investors don’t believe the Administration’s Sunday interventions solve the problems. The Federal Deposit Insurance Corp. says it couldn’t find a private buyer for SVB, though a source tells us Treasury and the Federal Reserve favored one. FDIC Chairman Martin Gruenberg nixed it owing to hostility to bank mergers. Instead the...

The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system.

By: The Editorial Board – wsj.com – March 12, 2023 This is a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about. The unpleasant truth—which Washington will never admit—is that SVB’s failure is the bill coming due for years of monetary and...

The comments were Powell’s first since inflation unexpectedly jumped in January, and marked a stark acknowledgement that the “disinflationary process” he spoke of repeatedly in a Feb. 1 news conference was not unfolding smoothly.