![US Federal Reserve chairman Jerome Powell after the Fed raised interest rates by a quarter of a percentage point, on March 22. Reuters](https://thenational-the-national-prod.cdn.arcpublishing.com/resizer/v2/Z7GCQOACJH4Y3UWN6UUYRHA7LY.jpg?smart=true&auth=533f2d0bf6c6ced81d76e8dc059da07e9695e497f67a98802b2da220080b0d4a&width=400&height=225)
US Federal Reserve chairman Jerome Powell after the Fed raised interest rates by a quarter of a percentage point, on March 22. Reuters
US Federal Reserve chairman Jerome Powell after the Fed raised interest rates by a quarter of a percentage point, on March 22. Reuters
The interest rate dilemma: Smash inflation but don't destabilise the banks
Central bankers still need to squash inflation, but can they do so without damaging the banks, asks Matthew Davies