Bank Turmoil Seen Crimping Credit at Double Powell’s Estimate
- Most economists see half-point hike impact or more from banks
- Consensus sees recession coming, likely this quarter or next
Jerome Powell
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
US bank stress will tighten credit by twice as much as expected by Federal Reserve Chair Jerome Powell, said economists surveyed by Bloomberg, tipping the economy into recession.
Almost all of the economists expect the Federal Open Market Committee to hike interest rates another quarter percentage point at its May 2-3 meeting, to a target range of 5% to 5.25%.