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US official: Banking pressures are bringing the United States closer to recession

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Neel Kashkari, Chairman of the US Federal Reserve in Minneapolis, confirmed today, Sunday, to CBS TV, that the recent pressures on the banking sector and the possibility of a subsequent credit crisis are bringing the United States closer to recession.

“It certainly brings us closer. What is not clear to us is to what extent these banking pressures will lead to a large-scale credit crunch. This credit crunch … will then slow down economic activity. That is something we are watching very closely,” Kashkari said.