The Banking Crisis: A New Era of Uncertainty.
While the current banking crisis is not as severe as the 2008 crisis, it is still a cause for concern as three US banks have failed this month and over $100 billion in deposits have flowed out of small banks. The Federal Reserve's policy outlook remains fractured, with a recent rate hike and emergency lending facilities for US banks. BlackRock notes that the Fed's economist forecasts indicate a recession coming to the US economy in the months ahead, and the Fed expects another 0.25% rate hike will be needed to slow inflation.