Neel Kashkari, President of the US Federal Reserve in Minneapolis said that the recent pressures on the banking sector and the possibility of an ensuing credit crisis are bringing the US closer to recession.
He added that 'the recent bank turmoil has increased the risk of a US recession but that it was too soon to judge what it means for the economy and monetary policy'.
This came according to his statements on Sunday to the (CBS) TV network, and it was reported by CNBC Arabia.
Kashkari continued: What is not clear to us is the extent to which these banking pressures will lead to a large-scale credit crisis, and this credit crisis will then lead to a slowdown in economic activity. This is something we are watching closely.”
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