“It is clear we do need to strengthen supervision and regulation” of banks, he said. He said that officials were ready to learn from the collapse of Silicon Valley bank, a likely nod to the fact that the Fed was the failed bank’s primary regulator, and it didn’t address problems at the lender before it was too late. Powell said that the American banking system was “sound and resilient,” and that the Fed was prepared to use all of its tools to keep it safe. Powell said that “a pathway still exists” to a soft-landing - in which the Fed cools the economy without tipping it into recession - “and we’re trying to find it.” They also forecast raising interest rates to 5.1 percent by the end of 2023, before coming down to 4.3 percent by the end of 2024. In its latest economic projections, Fed officials now expect economic growth to be slightly slower this year, and inflation slightly higher, than they predicted in December. Powell says that the Fed “considered” pausing interest rates because of the banking problems, but said that the economic data had been strong, underscoring the tough spot the central bank is in. Powell, the Fed chair, took questions from reporters about the central bank’s decision to raise rates for a ninth consecutive meeting.
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