Fed staff expects banking crisis to cause a recession this year
The Federal Reserve staff expect a banking crisis to cause a recession this year. The Federal Reserve's staff is more worried about the U.S. economy tipping into a recession after the recent banking crisis, the minutes from the central bank's meeting in March reveal. Economists at the Federal Reserve said they expect a "mild" recession later this year, an escalation from their previous assessment. "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," according to the publicly posted minutes from the meeting, which took place over March 21-22 right after the collapse of Silicon Valley Bank and Signature Bank. The comments from economists on staff within the Federal Reserve reflect a dimmer outlook than public statements from Chairman Jerome Powell, wh...
