Fed's Kashkari: Banking stress brings U.S. closer to recession - CBS
Adds further material
By Howard Schneider
WASHINGTON, March 26 (Reuters) -Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the U.S. closer to recession, Minneapolis Fed president Neel Kashkari said Sunday in comments to CBS show Face the Nation.
"It definitely brings us closer," Kashkari said. "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy. This is something we are monitoring very, very closely."
Kashkari, who has been among the most hawkish Fed policymakers in advocating higher interest rates to fight inflation, said it remained too soon to gauge the size of the “imprint” bank stress will have on the economy, and therefore too soon to know how it might influence the next interest rate decision of the Federal Open Market Committee.
The Fed raised interest rates a quarter of a point this week but opened the door to pause further increases until it is clear how bank lending practices may change following the recent collapse of the Silicon Valley Bank and New York-based Signature Bank.
"Right now the stresses are only a couple of weeks old,” Kashkari said. “There are some concerning signs. On the positive side is deposit outflows seem to have slowed down. Some confidence is being restored among smaller and regional banks."
"At the same time," he continued, "we've seen that capital markets have largely been closed for the past two weeks. If those capital markets remain closed because borrowers and lenders remain nervous, then that would tell me, okay, this is probably going to have a bigger impact on the economy. So it's too soon to make any forecasts about the next FOMC meeting."
The Fed has rolled out an emergency lending program meant to keep other regional lenders from trouble should deposit withdrawals increase. Recent data showed money moving from smaller to larger banks in the days following SVB’s March 10 collapse, though Fed chair Jerome Powell said last week he thought the situation had “stabilized.”
Congress this week holds its first hearings on the SVB failure, which has sparked calls for tighter supervision of mid-sized banks, prompted the Fed to launch its own internal review of bank supervision, and led to calls for a broadening of the federal government’s deposit insurance program.
WRAPUP 9-Deutsche Bank tumbles as jittery investors seek safer shoresnL8N35W339
WRAPUP 1-Fed officials say sense of financial stability cleared path for rate hikenL1N35W1PL
WRAPUP 7-Yellen tries to assuage investor fears as bank stocks slidenL1N35V0RR
WRAPUP 10-U.S. Fed delivers small rate hike amid global banking turmoilnL1N35V02P
Reporting by Howard Schneider
Editing by Nick Zieminski
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
