Fed Hiked and So Did Silicon Valley Bank

Federal Reserve policy makers raised rates on Wednesday, but they tried to do so in a kind way. Maybe that is the most important takeaway.

The quarter-point increase in the Fed’s target range was largely, but not entirely, expected. With all the recent trouble in the banking sector, some economists had forecast the central bank would hit the pause button. Similarly, although interest-rate futures put higher chances on a rate increase than not, they didn’t rule out a pause.