Fed President Releases Recession Warning, Amidst US Dollar Collapse

The US dollar collapse continued amidst the crises that the country is seeing these days. Check out the latest news about what the Fed is revealing.

The President of the Minneapolis Federal Reserve Bank has just issued a warning, saying that a recession could be around the corner as a banking crisis puts pressure on the US economy.

According to a new report by Reuters, President Neel Kashkari says that even though the Fed’s current tactics to combat inflation could cause a recession, the central bank is planning on continuing to raise interest rates.

Kashkari says that while a recession may be undesirable, higher inflation would be even worse. He says that the Fed is still committed to lowering inflation, but that its 2% target likely won’t be hit by the end of the year.

“It could be that our monetary policy actions and the tightening of credit conditions because of this banking stress leads to an economic downturn.”

He continued and stated the following:

“That might even lead to a recession. We need to get inflation down… If we were to fail to do that, then your job prospects would be really hard.”

Back in March, in an interview with CNBC, Kaskhari said that the banking crisis would take center stage in the Fed’s upcoming FOMC (Federal Open Market Committee) meeting in May.

“It’s too soon to make any forecasts about the next interest rate meeting that we have, the next FOMC meeting.

On one hand, such strains [on banking] could then bring down inflation, so we have to do less work with the federal funds rate to bring the economy into balance.”

Amidst the crisis that the US has been seeing, the crypto industry seems to continue to flourish. At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $30,059.