Comments from the Richmond Fed President
  • 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