Federal Reserve’s Campaign to Lower Prices Continues as Justice Department Investigates Silicon Valley Bank Collapse

The Federal Reserve’s campaign to bring down high prices has grown more complex in recent days, as the Consumer Price Index (CPI) showed that annual price increases continued to slow in February. According to the Bureau of Labor Statistics, prices were up 0.4% on a monthly basis, representing a cooldown from the January monthly rate of 0.6%.

The CPI is a closely watched gauge of inflation, and the eighth consecutive month of declining annual rates marks the lowest level since September 2021. Mark Hamrick, senior economic analyst for Bankrate, commented that “inflation has peaked, but it hasn’t gone into hibernation.”

In addition to the CPI, the Justice Department has opened an investigation into last week’s collapse of Silicon Valley Bank. Three sources familiar with the matter confirmed to NBC News on Tuesday that the department’s probe is in its early stages, and part of it will examine whether bank executives sold any stock prior to the collapse. A team of FBI agents based out of the bureau’s San Francisco field office that specializes in white collar crime is leading the preliminary investigation.

The Federal Reserve’s campaign to bring down high prices is ongoing, and the Justice Department’s investigation into Silicon Valley Bank is in its early stages. It remains to be seen how these two events will affect the economy in the coming months.