Bank stress brings U.S. closer to recession, Kashkari says

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Bank stress brings U.S. closer to recession, Kashkari says
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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.

"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."
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