The FOMC was forced to return to tightening monetary policy, causing a deep recession in 1981 and 1982. This is an important lesson that guides my thinking about monetary policy and my continued support for policy actions that will continue to lower inflation. It is also important to remember that today's inflation is a global concern.
Three General Observations Stemming from the Recent Banking Turmoil Given the efforts to build resilience in the banking system over the past decade and a half, two natural questions are, why did Silicon Valley Bank (SVB) and two other sizable U.S. banks fail this spring, and why did Credit Suisse-a global systemically important bank (G-SIB)-require a government-supported rescue acquisition?