The Fed is putting the economy at risk by not prioritizing bank stability, Moody's Mark Zandi said.
I think that's a pretty significant increase in interest rates, and I do think that puts the economy in jeopardy," Zandi warned.
The fed funds rate is now officially targeted between 4.75-5%, after central bankers had already hiked rates 1,700% over the last year in order to control inflation.
Market commentators like Paul Krugman and Bill Ackman had urged the Fed to pause or pull back its rate hiking regime altogether as worries about the banking system have spiraled.
"The first priority has got to be the stability of the banking system, and of course they did not do that, and I do think they're running a risk here," he said.