Fed's Kashkari warns of US recession risk due to banking strains.

The US banking crisis is bringing the country closer to a recession, according to Minneapolis Fed President Neel Kashkari. Kashkari cited the deterioration of the commercial real estate market and rising interest rates as the most pressing causes for concern. However, he also noted that the banking system is "sound" and well-equipped to handle further shocks. The Fed's next meeting will take place on May 2-3, with the market pricing in a 61% probability that rates will remain unchanged and a 39% chance of another quarter-point hike.