Fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year, according to Federal Reserve documents.
Olivier Douliery / AFP - Getty Images fileWASHINGTON — Fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year, according to Federal Reserve documents released Wednesday.
Projections following the meeting indicated that Fed officials expect GDP growth of just 0.4% for all of 2023. With the Atlanta Fed tracking a Q1 gain around 2.2%, that would indicate a pullback later in the year. Since the meeting, inflation data has been mostly cooperative with the Fed’s goals. Officials said at the meeting that they see prices falling further.
The minutes noted that the programs helped get the industry through its troubles, but officials said they expect lending to tighten and credit conditions to deteriorate.
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