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Fed Projects Mild Recession in 2023 Due to Banking Crisis
Fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year, CNBC reported Wednesday, citing Federal Reserve documents released.
Minutes from the March meeting of the Federal Open Market Committee included a presentation from staff members on potential repercussions from the failure of Silicon Valley Bank and other tumult in the financial sector that began in early March, reported CNBC.
Although Vice Chair for Supervision Michael Barr said the banking sector “is sound and resilient,” staff economists said the economy will take a hit.
“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 said.
- ◦Economy
