Economic Recession Inevitable? BlackRock Appears to Explain!


 The banking collapse of crypto-friendly lenders Silicon Valley Bank (SVB) and Signature bank is rekindling recession risks. However, Credit Suisse's bailout deal may bring an indication that a recession may be imminent. However, BlackRock executives assured that a recession may be delayed but not yet inevitable.

Based on the report, the deputy chief investment officer of BlackRock Inc stated that slow growth and continued inflationary pressures indicate that the market will see a large gap between winners and losers.

However, inflation is showing some signs of easing after hitting historic highs. Estimates of global profit margins are deteriorating. Analysts expect S&P 500 earnings to be underwhelming in the first quarter.

The report added that full-year expectations had been hit, however, strategists warned that there was still room for further declines.

So far financial authorities have not placed a blanket ban on the crypto asset sector, the Federal Reserve, FDIC, and OCC have issued guidance to banks on the risks to keep in mind when dealing with crypto firms.