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Fed's Kashkari: Banking stress could last longer than many expect

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari said on Thursday he is prepared that the banking sector stress touched off by the failures of Silicon Valley Bank and Signature Bank two weeks ago could last longer than many expect. The Fed is watching closely to gauge whether the banking stresses lead to a sustained credit crunch that could slow the economy, Kashkari said at a townhall event livestreamed on the regional Fed bank’s website, and so far that is unclear. Kashkari joined his colleagues in a unanimous vote last week to lift the Fed’s policy rate range by a quarter of a percentage point to 4.75%-5%.

(Reporting by Ann Saphir; Editing by Chris Reese)

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