Central Banks Navigate Economic Uncertainty with New Strategies.

The Federal Reserve's decision to raise interest rates by 0.25 percentage points to a target range of 4.75%-5% signals that inflation remains their top priority, despite a banking crisis that has roiled the financial markets the past two weeks. Tighter credit conditions played a role in the Fed’s decision to raise rates by a more moderate pace than it had anticipated just a few weeks before. The impacts from the banking crisis will ripple widely through the economy, as banks get stingier with credit, and may lead to a fall in consumer spending and a recession.