The president of the Federal Reserve Bank of New York said the performance of office loans is a top supervisory issue, but not an immediate threat to financial stability.

Bets are piling up on a wide range of trajectories for the Fed's path — with some expecting it to mount a major about-face as growth stalls and others hedging the risk it will tighten policy further as elevated inflation persists.

Federal Reserve Governor Christopher Waller said he favored more monetary policy tightening to reduce persistently high inflation, although he said he was prepared to adjust his stance if needed if credit tightens more than expected.

Recent deposit flows raise questions about the Fed's support for these funds through its overnight lending facility, and whether that support is doing more harm than good.

The Cleveland Fed chief said she expects to make "some appreciable progress" toward taming price pressures in 2023, and estimates a closely watched gauge of inflation will reach 3.75% by the end of the year.

Throughout 2022, the California bank shed interest rate swaps that some believe could have prevented its failure.

The Federal Reserve wants a smaller balance sheet to help rein in inflation. But uncertainty in the banking system is pushing it in the opposite direction.

Economists have warned since last summer that speedy monetary tightening could be destabilizing. This week, the Federal Reserve will decide whether to stay on that course.

After the failure of two banks between $100 billion and $250 billion of assets, many are asking regulators to change their oversight practices for these banks. The Fed has a wide berth to make a wide array of changes.

One year after the Federal Reserve started frantically raising interest rates, the collapse of Silicon Valley Bank answered what had become perhaps the hottest question on Wall Street: When is something going to break?