A recession could come sooner on cooling bank lending
Publishing timestamp: 2023-03-15 21:56:05
Summary
Rapid moves in markets after regional bank failures in the US have some strategists now expecting a contraction in the economy to come sooner. Plummeting bond yields, steep drops in oil and stock prices, and sharp jumps in volatility are all signaling that investors fear a recession is now on the near horizon. Economists are also ratcheting down their growth forecasts on the assumption there will be a pullback in bank lending. The recent downticks in CPI and PPI readings, as well as retrenchment of last month's retail sales, added confidence that the Fed will soften its rigid tightening stance. However, nothing is clear or certain, and the March 22 FOMC statement and press conference is just a week away, but it will probably feel like an eternity.
Sentiment: NEGATIVE
Tickers: @CL.1, CSG.N-CH, .VIX, SIVB, SBNY, FRC, CS, US2Y, PACW,
Keywords: svb financial group, business news, pacwest bancorp, stock markets, united states, u.s. 2 year treasury, banks, bonds, investment strategy, market insider, signature bank, credit suisse group ag, first republic bank, economic events, economy, markets, cboe volatility index, interest rates,
Source: https://www.cnbc.com/2023/03/15/a-recession-could-come-sooner-on-cooling-bank-lending-.html