Banking Stress Increases Risk of U.S. Recession, Warns Fed's Kashkari

Minneapolis Fed president Neel Kashkari has said that recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. Kashkari, who has been among the most hawkish Fed policymakers in advocating higher interest rates to fight inflation, said it remained too soon to gauge the size of the “imprint” bank stress will have on the economy, and therefore too soon to know how it might influence the next interest rate decision of the Federal Open Market Committee.