🙏🙏🙏🙏🙏🙏🙏BS editorial points out [1] initially FED was late in taking action to quell inflation [2] sharp increases in interest rates resulted in valuation losses for banks who have invested heavily in bonds and mortgage backed securities [3] but FED this time avoided taking a pause as this would have sent wrong signals vis a vis its fight against inflation which is already too high for its comfort [4] even otherwise [ and this important from my view point ] banking system there is facing lot of constraints– in dispensing credit– which has curtailed demand which is the function of rate increase. [5] thus FED was content on 25 basis point increase–24.3.23