The U.S. economy could slip into recession given the fast pace of interest rate rates over the past year, said Chicago Fed President Austan Goolsbee on Friday.

“There is no way you can look at current conditions around the U.S. and not think that some mild recession is on the table as a possibility,” Goolsbee said, in an interview on CNBC.  

At the same time, while inflation is coming down, there is “clear stickiness” in some categories of prices, he said. 

Goolsbee said he is focused on whether there is a credit crunch in the wake of the collapse of Silicon Valley Bank in March.

The Chicago Fed president, who is a voting member of the Fed’s interest rate committee, said he wanted to see more data before deciding what to do at the Fed’s next meeting on May 2-3 .

“What I am looking at quite clearly coming into the next FOMC meeting is what’s happening on credit…how much of a credit crunch is there,” he said.

“Let’s be mindful that we’ve raised a lot. It takes time for that to work its way through the system,” Goolsbee said. 

The March retail sales report, released earlier this morning, might be  a sign of further slowing in the economy, he said. The government reported a 1% drop in retail sales, the biggest decline since November.

“If you add financial stress on top of that, let’s not be too aggressive,” he said.

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