7% rates. but they can t do that without causing more bank problems and the banks make the loans and causes big recession. they have to hope that inflation is going to come down. at this stage would require a tax and spending cuts, because the fed is running out of game at this point. neil: you think about that, if their goal is to still to get it down to 2% and we re averaging around 5%, that s, in the aggregate, we re a long way from getting this under control. we are, in fact. jonas was referring to inflation expectations on a long-term basis popping up to the highest levels since last june when the fed first hiked rates by 75 basis points, three quarters of a percentage point, in order to begin getting it under control and bringing the expectations down, but jonas is right, we re in between a rock and a hard place when it comes to fed policy because we seem to have this rolling banking crisis where banks have been so pinched because of higher interest rates while at the same time
again. concerns with the drip, drip, drip of bank problems. grady trimble with more. the fed, the white house, lawmakers on the hill keep telling us that the banking system is safe and yet more banks keep failing. today while lawmakers held a hearing on other recent bank failures, additional banks look like they re on the cusp of collapse. shares of regional banks tumbling after pac west became the latest bank to say they re exploring a sale among other options. at the first time, first horizon and t.d. bank called off their planned merger. all of this comes as americans are already weary of their banks. a new gallup survey conducted before the latest failure found nearly half of americans are worried about where they re
on which i don t think anybody, uh, can no, i think the fed was right to signal. uh enormous uncertainty. i probably would have allowed more room for concern about inflation and left the door a bit more open to multiple rate hikes, given the strength of the recent i inflation data than the fed did in their statement, but it s a very close ah call and i think what they did was entirely uh, entirely reasonable. a lot is going to depend upon how the regulatory authorities and the bank insurance so far it ease deal with the remaining bank problems out there and what happens in ah, the banking system. i don t know if you were
retailers come. in but the reality is, this is an option for families that need to budget when a team where food is expensive. back to you. neil: thanks, madison. meantime here, the european central bank raised interest rates itself even in the face of the credit suisse bank problems. whether that telegraphs what our own federal reserve will do next week when they have a two-day meeting next tuesday and wednesday, hard to say. who better than former top fed official himself, the former philadelphia federal reserve president, charms plosser. very good to have you. a lot of people were surprised to see that the european bank raised rates in the middle of this. but they argue there s an inflation fight to be had and we ll fight it. you think our federal reserve will do the same next week? i suspect they will, neil. they ve spent the last six