Thread The banking crisis

The Times podcast: Silicon Valley Bank’s collapse may affect your interest rate

Jerome Powell
Federal Reserve Chair Jerome H. Powell has been aggressive in promoting interest rate hikes to fight inflation.
(Jacquelyn Martin / Associated Press)

When inflation is high, the Federal Reserve has historically raised interest rates. But the recent failures of banks like Silicon Valley Bank have sparked worries about the stability of our banking system. Now the Fed must weigh whether the banking system could withstand the turmoil that raising interest rates could bring. To get inside the mind of Fed Chair Jerome H. Powell, we look to a previous era of high inflation, the late 1970s and early ’80s, and the decisions of then Fed Chairs Arthur Burns and Paul Volcker.

Today, we talk about what’s next. Read the full transcript here.


Host: Gustavo Arellano

Guests: L.A. Times economics reporter Don Lee

More reading:

Did deregulation lead to Silicon Valley Bank’s collapse?

Federal Reserve officials sound warnings about higher rates

U.S. inflation eases but stays high, putting Fed in tough spot

About The Times

“The Times” is produced by Denise Guerra, Kasia Broussalian, David Toledo and Ashlea Brown. Our editorial assistants are Roberto Reyes and Nicolas Perez. Our engineers are Mario Diaz, Mark Nieto and Mike Heflin. Our fellow is Helen Li. Our editor is Kinsee Morlan. Our executive producers are Jazmin Aguilera, Heba Elorbany and Shani Hilton. And our theme music is by Andrew Eapen.