Neel Kashkari, President of the Minneapolis Federal Reserve Bank, recently issued a warning regarding a looming recession due to the banking crisis affecting the US economy. He believes that although an economic downturn is not desirable, higher inflation would be even worse and therefore the central bank plans on continuing to raise interest rates. When asked about the Federal Open Market Committee (FOMC) meeting in May, Kashkari stated that it is too soon to make any predictions and the level of banking strain on the economy is uncertain. To support his statement, the U.S. Bureau of Labor Statistics recently released their monthly Consumer price Index (CPI) Report which showed an increase of 0.1% inflation. This data is presented in contrast to the 2% inflation target which the Fed believes is necessary. It is safe to assume that the effects of the banking crisis and the inflation levels on the economy are something that the FOMC is watching very closely in an attempt to mitigate any threatening economic circumstances.
Matthew Mendoza
- 2023-04-12
The Bank Crisis and its Effect on the US Economy
Neel Kashkari, President of the Minneapolis Federal Reserve Bank, recently issued a warning regarding a looming recession due to the banking crisis affecting the US economy. The U.S. Bureau of Labor Statistics recently released their monthly Consumer price Index (CPI) Report which showed an increase of 0.1% inflation.
