U.S. economy awaits recession amid problems in the banking sector – JP Morgan

The U.S. economy is waiting for a hard landing because of the crisis in the banking system, warned JP Morgan. It has increased the likelihood of recession, which is an additional negative factor for the stock market, writes investing.com, citing Business Insider.

According to the bank, the Fed may no longer be able to prevent a hard scenario, as market confidence has been shaken since the collapse of Silicon Valley Bank - this event weakened players' confidence in the U.S. banking system, causing the collapse of bank stocks. The latter's problems are slowing the economy considerably. Even if the Fed manages to curb the further development of the banking crisis, lending conditions are still expected to deteriorate - this is aided by pressure from the market and regulators.

The Fed's rate decision will be published this evening. Most players and analysts expect it to rise by 25 basis points.