Experts predict a mild recession starting later this year due to the U.S. banking crisis, according to Federal Reserve documents released Wednesday. 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 financial sector that began in early March.
Vice Chair for Supervision Michael Barr said while banking sector “is sound and resilient”, staff economists anticipate an economic hit nonetheless: “Given their assessment of potential economic effects…the staff’s projection at time of March meeting included mild recession starting later this year with recovery over subsequent two years,” as per summary statement.
