Business Highlights: Silicon Valley Bank; inflation

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WASHINGTON (AP) — The Federal Reserve blamed last month’s collapse of Silicon Valley Bank on poor management, watered-down regulations and lax oversight by its own staffers, and said the industry needs stricter policing on multiple fronts to prevent future bank failures. The Fed was highly critical of its own role in the bank’s failure in a report released Friday, saying banking supervisors were slow to recognize blossoming problems at Silicon Valley Bank as it quickly grew in size in the years leading up to its collapse. The report also points out underlying cultural issues at the Fed, where supervisors were unwilling to be hard on bank management when they saw growing problems.

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Inflation pressures remain persistent as consumers pull back

WASHINGTON (AP) — Key measures of prices and wages remained high in March, keeping the Federal Reserve on track to raise interest rates next week for the 10th time since March of last year in its drive to defeat high inflation. An index that is closely followed by the Fed, which excludes volatile food and energy costs to capture “core” inflation, rose 0.3% from February to March and 4.6% from a year earlier. That is still far above the Fed’s 2% target rate. Some Fed officials are concerned that core inflation hasn’t declined much since reaching 4.7% in July.

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