The chances of the United States falling into a recession in the next twelve months have increased to 35 percent because of the “near-term uncertainty around the economic effects of small bank stress,” Goldman Sachs warned Thursday.
After the collapse of Silicon Valley Bank and Signature Bank, which has placed pressure on additional institutions, such as Credit Suisse in recent days, Goldman Sachs’ outlook on the U.S. economy has soured amid numerous crises under the Biden administration.
The banking stress is expected to be felt by local community banks. According to Barron’s, “The stress will lead to small banks with a low-share of deposits covered by the Federal Deposit Insurance Corporation (FDIC) reducing lending by 40%, they estimated, with others cutting lending by 15%.”
Sen. John Kennedy: “It’s a bailout, and I’m not gonna bubble wrap it.”— The Post Millennial (@TPostMillennial) March 16, 2023