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reserve is going to say we're going to watch how data unfolds, and it's basically forecasting one more 25 basis point hike by the end of the year. this was an interesting meeting, prior to the banking issues, the story was inflation is high, make inflation rates higher. the issue is one of the dominos to fall that led to silicon valley bank's collapse was higher interest rates. that was partially behind that. it decided to go with the smallest rate hike he can do, which is a quarter point. and in the press conference. >> by there are multiple meetings between now and the end of the year. it could mean it's going to flatten out. sgr i think the expectation, they will stop the interest rate hikes, and you know, the fed
record highs earlier this year, now a decline. how this fed decision could affect the price of your house. and what the biden administration is saying about the state of the economy. we'll have a live report from the white house. our nbc news reporters are following all of the latest developments. nbc's business and data reporter brian cheung, did we just get that in? >> the federal reserve has raised interest rates by a quart%é%cypoint. this was as expected. that means that the interest rates at the short-term here in this country are between 4 3/4 to 5%. markets were expecting that the fed was going to raise interest rates. the big story was whether or not they could thread the needle, raise interest rates high enough to take care of high inflation which we're all feeling at the store. at the same time, not raising interest rates so much that it breaks another bank. one of the dominos to fall that led to the collapse, though not
he kept the door open. the first hearing is going to be occurring on march 29th, lindsey. >> brian, what are you watching for when the fed meets this week? "the washington post" editorial board are out with a new op-ed urging a pause to rate increases? >> on wednesday afternoon we'll have a decision from the federal reserve with regard to interest rates. the expectation they would get more aggressive in raising interest rates to take steam out of the economy and take inflation down. that was the story at least prior to the bank failures. one of the dominos to fall that led to svb's collapse was interest rates. the expectation is the fed might slice it through the middle by going with perhaps a quarter point or maybe not moving at all. either way we'll get a press conference from the fed chairman where he'll likely be pressed on the things we've been talking about with regards to the
court. they didn't think it would be successful. d.a. bragg continues to do this and donald trump is under investigation by those here in washington for several other cases, martha. >> martha: david, thanks very much. bret baier joins us now here in new york. bret, this is high drama and we'll see what happens over the next couple days if we get an indictment for president trump and if he fights his extradition from florida back to new york. >> it's all a big if right now. we have to take a step back and wait for the dominos to fall if they're going to fall. i think david lays it out perfectly about the feds not moving forward with the charge. it's important to point out that the previous district attorney did not go forward with these charges saying there wasn't enough there. bragg has chosen differently. okay. big picture. what does this mean? critics of this are obviously calling it politicized. they say you're going after this
>> they were flashing red. in that moment, can you not risk a number of banks collapsing all at once. that's how a financial crisis begins. erring on the side of caution is what you have no choice but to do in that situation. you fail the bank, you backstop all the depositors and you stop the dominos right then and there. >> can i have you, congressman, before we let you go, respond to what we're hearing from some republicans on this saying that because svb was a woke bank, as people like james comer and other republicans saying that is part of why they failed? >> the investments they lost
there seems to be a lot of initial reaction to this on capitol hill at this point there seems to be in clear direction as to what could happen next. >> ron desantis mentioned the woke stuff as well i'll play sound from republicans saying this is all because of woke policies. let's listen >> i feel bad for all these people that lost all their money in this woke bank. >> this bank, they're so concerned with dei and politics and all kind of stuff -- >> we see now coming out that they were one of the most woke banks. >> ryan, i'm going to leave that to the side. mccarthy saying this is because of president biden's inflationary patrol sees and that's what -- that's what's to blame for these bank policies. any merit to that? >> with silicon valley bank there are a number of dominos fell it's not fair to say that one' lent led to the other. management ultimately made a decision to have their portfolio
together when you talk about the uncertainty we face in this economic outlook prior to the developments that happened over the weekend, we were already concerned about where the economy was going to go because inflation was still remaining quite high the federal reserve was talk about the idea of having to get more aggressive on hiking interest rates to deliberately slow down this economy to take inflation down now you have the concern with this bank and what is very interesting is that the higher interest rate campaign that the federal reserve has been on over the last year was one of the first dominos that led to the sale of the securities portfolio that ultimately triggered the bank run at silicon valley if -- >> lawmakers say they should have seen it coming. >> yeah. if you're the ceo of that bank, you should expect that rates were going to go up as inflation went up. but besides the point what we're talking about here is the federal reserve's next meeting next wednesday where prior to all of this, the expectation was they could get more aggressive on the interest rate hikes if you want to stop the bleeding and concern that could spill over into other banks as we see reviews for downgrades at other regional banks, maybe you don't
financial contagion. joining me to discuss is aaron cline, senior fell low at the brookings institution and former deputy stapt secretary for economic policy at the treasury department. what's your answer to this week's poll question? i isolated or more con toy on? >> i don't think it's going to lead to a horrible disease that's going to bring down the financial system, as we saw in 2007 and 2008. however, i'm not it's completely an isolated incident. silicon valley bank isn't the first to go under this week. silver gate had leaned heavily into crypto. there are a couple more dominos that could fall. i'm not sure this is a completely isolated one off event, but i also think the regulators have been tell ing u that st the contagion is
there be broader financial contagion. joining me to discuss the aaron cline, former deputy assistant for economic policy at the treasury department. thank you so much for being here. what's your answer to this week's poll question, isolated or more contagion? >> look, i don't think this is the type of contagion that's going to lead to a horrible disease that's going to bring down the financial system as we saw in 2007 and 2008. however, i'm not sure it's completely an isolated incident. silicon valley bank isn't the first bank to go under this week. silver gate, a smaller bank that had leaned heavily into crypto, self-liquidated and went down a few days earlier, there are a couple more dominos that could fall. i'm not sure this is a completely isolated one-off event, but i think the regulators have been telling us that the contagion from crypto is contained within parts of our financial system and silicon
to spread misleading soft on crime talking points. house speaker mccarthy on cnn this morning saying that the council want to decriminalizing c carjackings. that's false. the speaker's home state of california, carjacking is only punishable by nine years. frankly the speaker's ignorance on this issue is exactly why congress shouldn't be making decisions for the district of columbia. >> hard to understate the frustration from house democrats, leading democrats over the way the white house has handled this. >> we have seen a falling of political dominos ever since last week when the president said that he wouldn't veto this bill if congress were to pass