likely to be bumpy. reporter: the increase, a quarter point. the fed was reluctant to raise rates more after three bank failures in recent weeks. higher interest rates over the past year were a contributing factor to silicon valley bank s collapse after it took a big loss on bond sales. for the first time, the fed chair publicly addressed the banking crisis, insisting the cases are isolated. our banking system is sound and resilient with strong capital and liquidity. reporter: on wall street, the key indexes lost 1.6%. had the fed not raised rates, the market may have inferred more banks are at risk. regulators are under fire for failing to recognize the bank failing warning signs before it was too late. these people have ready access to anything they need, to be able to stop a problem in its tracks. now, it is coming under pretty heavy scrutiny from people saying, where were you? why weren t you paying attention? reporter: fed chair powell
point today. the highest level since 2007. this comes amid economic uncertainty after the recent notable bank failures. nbc s tom costello has the latest. with a reputation on a line of a nation central bank today shows the path most anticipated, hiking interest rates for the ninth time in a year, making clear that despite low unemployment inflation, running at 6%, it is still too high. the process of getting inflation back down to 2% has a long way to go and is likely to be today s increase, a quarter point. the fed was reluctant to raise rates more after three bank failures in recent weeks. higher interest rates over the past year were a contributing factor to silicon valleys bank collapse after it took a big loss on bond sales. for the first time today, the fed chair publicly a dressed the banking crisis, insisting the cases are isolated. our banking system is sound and resilient, with strong capital and liquidity. on wall street
The municipal bond sector is under tremendous pressure, which has hurt leveraged CEFs. California munis are no exception with VCV down ~30%. Read more here.
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