Federal Reserve Bank of Minneapolis President Neel Kashkari.

(Bloomberg file photo)

[Financial Channel/Comprehensive Report] Minneapolis Federal Reserve Bank President Neel Kashkari (Neel Kashkari) said that the recent turmoil in the banking industry has exacerbated the risk of a US recession, but now it is time to judge the impact on the economy and monetary policy. It's too early to say what that means.

Asked in an interview on CBS's "Face the Nation" whether the recent pressures would tip the U.S. into recession, Kasikari said it would undoubtedly put the U.S. in recession. One step closer to recession.

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Kasikari, who was among voters on monetary policy this year, said it was still unclear to what extent these banking stresses would lead to a broad-based tightening of credit and whether they would slow the economy, something the Federal Reserve is watching closely , Kasikari added, it is too early to make any predictions about the next rate meeting.

The next meeting of the policy-making Federal Open Market Committee (FOMC) is May 2-3.

Last Friday (24th) the other three Fed officials all stated that inflation is still the primary issue and that further tightening policies may be needed.

In contrast, Kasikari's speech was more cautious, which may reflect a change in his attitude. Kasikari has been a staunch hawk for the past few months, supporting the accelerated cooling of prices through interest rate hikes.

Although economic uncertainty has increased after the second largest bank in US history collapsed, policy makers still raised interest rates by 0.25 percentage points (1 yard) on March 22 to continue to fight against inflation.

The hike pushed the Fed's benchmark interest rate to a target range of 4.75 to 5 percent.

Amid the current turmoil in the banking sector, a pullback in bank lending could help provide markets with some of the tightening that policymakers want to reduce inflation, reducing potential rate hikes, Kasikari said.

Kasikari said that while the banking system is sound and the banks have strong capital and a lot of liquidity, it will take time to fully resolve the current problems and sometimes it will take longer for all the stress to disappear from the system on its own

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