- Deposit flows among US banks relatively stable
- Encouraged by evidence of resilience
- Important to remember not every bank failure becomes a Lehman Brothers
- supported a 25 basis point hike at the last meeting given substantial inflation pressure and banking resilience
- Still too soon to know impact of bank stress on credit, inflation, or with pretty wide range of possible outcomes
- Reasons to think inflation battle will take time
- Fed will need to stay nimble in weighing fallout from a bank stress against incoming data on inflation
