US banking crisis to hinder economic growth, says ex-Goldman Sachs CEO.

Former Goldman Sachs CEO Lloyd Blankfein has said that the US banking crisis will expedite overall credit tightening and slow the US economy. He added that banks will have to husband their equity, which will lead to less lending on the deposits they have, resulting in less credit and less growth. Blankfein and former Goldman Sachs president Gary Cohn both supported the prediction that the Federal Reserve will raise interest rates by 0.25% in the coming week but added that the central bank may need to pause and reassess thereafter to give itself room going forward.