Banks jittery as Fed to make next rate move

The US economy was hit with more jarring economic news on Tuesday as regional bank stocks tumbled along with job openings, and the focus shifted to the Federal Reserve, which was expected to raise interest rates again when it concludes its two-day meeting on Wednesday.

The Fed is facing criticism over the current banking crisis for waiting too long to increase rates to address rising inflation.

"By missing the boat on inflation in 2021, the Fed was forced to raise rates aggressively throughout 2022.That's ushered in significant deposit flight in 2023, hurting the smallest banks as deposits fled to money-market funds and larger banks," wrote Edward Harrison on Bloomberg.com on Tuesday. "Concentrating risks in more highly regulated institutions certainly makes the Fed's job easier."