St. Louis Federal Reserve President James Bullard on Thursday dismissed concerns of a credit crunch in reaction to the turmoil in the financial system following the collapse of Silicon Valley Bank and other institutions in recent weeks.
Bullard said he does not expect lending standards to rise to a level that would push the economy into a recession.
“It’s too soon to tell what kind of tightening we are seeing,” Bullard told reporters following his speech on the economy and monetary policy at the Arkansas State Bank Department’s Day with the Commissioner event. However, he said, “credit tightening will not tighten enough to send the U.S. economy in recession.”
Source : Credit Tightening Won’t Trigger Recession, Says Fed President Bullard