¡°Federal Reserve is working hard to get inflation back down to something that we all feel more comfortable with.¡±

The Fed is keeping a close watch on the data ahead of next week's 14critical two-day 15policy meeting. The report comes amid growing signs of 16financial stress on the 17banking sector. On Friday, 18federal regulators released the results of their reviews of what caused two major banks to fail. The FDIC says risky 19crypto investments and 20poor management caused Signature Bank to fail. Meanwhile, the Fed's report on 21Silicon Valley bank's 22collapse points to bank leadership failing to manage risks as well as the Fed's own 23supervisors not fully appreciating the bank's 24vulnerabilities.

¡°The banking system obviously is under a lot of stress given the run up in 25interest rates and the 26losses that¡¦that's created for them.¡±

It comes as a third bank, First Republic Bank heads towards potential collapse. Shares of the US regional 27lender have lost more than 90% of their value since the banking crisis began last month.

¡°They're taking on significant borrowings because of all of the deposits that have gone out the door.¡±