Federal Reserve Raises Interest Rates Amidst Bank Collapses

On Wednesday, the Federal Reserve made an announcement, raising the federal funds rate by 25 basis points to between 5% and 5.25%. This is the first time since 2007 that the rate has gone over 5%. Despite the anticipated 25 bps increase, this decision was made following several bank collapses, including the seizure of First Republic by regulators, the sudden seizure of Silicon Valley Bank after comments from the CEO caused a bank run, along with Signature and Silvergate voluntarily liquidating in the past few months.