Article source: ConstructConnect
Today, the Federal Reserve has chosen the middle path in raising its policy-setting interest rate by 25 basis points (where 100 basis points = 1.00). The target range for the federal funds rate is now 4.75% to 5.00%.
Worries about the banking sector not just in the U.S., but worldwide, placed the Federal Reserve in a bind with respect to its interest rate policy. SVB (Silicon Valley Bank) started the downhill ball rolling when its capitalization weakened as a result of interest rates climbing and depressing the value of its bond holdings.
