The Federal Reserve taking a dovish stance, raising interest rates a quarter of a percentage point at its March meeting. At the beginning of month, the expectation was for a half-point hike, but following the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY), the quarter-point hike was what most investors had priced in. In a press conference after the decision was announced, Chairman Jerome Powell made it clear that bringing down inflation was still the Fed's goal, saying "inflation remains too high." However, he acknowledged the potential economic drag of the banking turmoil, stating "events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses." When it comes to the collapse of SVB, Powell didn't mince words, "at a basic level, Silicon Valley Bank management failed badly." Powell also addressed the Federal Reserve's review of its own supervision of SVB, stating "my only interest is that we identify what went wrong here," adding that after the investigation is complete, the Fed will need to develop and implement "the right policies to put in place so that it doesn’t happen again." Key video moments: 00:05 Response to bank crisis 00:19 Powell on SVB collapse 00:36 Fed response to SVB 00:47 Inflation is too high 00:58 Impact of banking crisis on inflation