Fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year, according to Federal Reserve documents released Wednesday.
Federal Reserve Board Chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington, DC, on March 22, 2023.WASHINGTON – Fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year, according to Federal Reserve documents released Wednesday.
"Given their assessment of the potential economic effects of the recent banking-sector developments, the staff's projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years," the meeting summary stated. Federal Open Market Committee officials ultimately voted to increase the benchmark borrowing rate by 0.25 percentage points, the ninth increase over the past year. That brought the fed funds rate to a target range of 4.75%-5%, its highest level since late-2007.came less than two weeks after Silicon Valley Bank, at the time the 17th largest institution in the U.S., collapsed following a run on deposits.
But concern over broader economic conditions remained high, particularly in light of the banking problems. Following the collapse of SVB and two other institutions, Fed officials opened a new borrowing facility for banks and eased conditions for emergency loans at the discount window.
Justification to pause. They needed something.
It's always better to advertise the worst and surprise on the upside, versus vice-versa.
This is serious inference,must be paid attention. In fact strong dollar has acted to keep at bay other economies. It was considered that the banking crisis will have cascade effect on banking system of other countries. The corrective measures will have to taken to fight recession
Who honestly believes we haven’t already been in one for the past year?
The federal reserve has never in its history predicted a recession. This proves they know it’s another 2008 style crisis and won’t be mild
When people gamble with no boundaries and bad management along with a guaranteed bailout from the fed this is the result
Enquanto os políticos se fizerem de cegos a desastrosa política externa americana, pescando guerras absurdas pelo mundo os EUA sempre serão uma dúvida.
But isn’t the banking crisis a result of the Fed raising rates too fast as a result of inflation that was caused by out of control federal spending? Excessive Federal Spending = Recession
They said mild and most will not feel it since jobs are up and pay.
That's funny, the banks expect the Fed to cause a recession this year...
Wealth evaporation and everyone line up for the rat race.
Fed causes recession, banking crisis is a sign of the Fed created recession
Yeah…. It’s the banks faults 🙄
That can’t be true…Jim Cramers been saying for months no recession….fed is guiding us to a soft landing lol
No No No. You can't put this on the banking. The FED has done nothing but set us up for a recession.
Let’s actually call this whole thing what it truly is, The beginning of the collapse of the American dollar.
The market still doesn't believe it.
The Biden Administration is a total disaster.TheBigGuySux
Profit_Raining
I thought we were already
Easy out for fed, blame it on a regional bank, not the historic increase in interest rates. Keep on easing rates, that will help!!!
If bitcoin didn't exist, I'd be worried, wonder if thats the next thing that saves the economy.. wouldn't be the first time tech saved the day..
And Elon said months ago u was heading this way
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