Bank of America says, “‘A ‘recession shock’ is coming to the US”

Bank of America warns ‘recession shock’ on the horizon

The U.S. economic outlook is darkening so rapidly that a recession may be on the horizon as the Federal Reserve makes an aggressive pivot to tame the hottest inflation in four decades, according to economists at Bank of America.

In an analyst note to clients, BofA chief investment strategist Michael Hartnett warned that surging consumer prices, combined with an increasingly hawkish central bank, could precipitate an economic downturn in the U.S.

“‘Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming,” Hartnett wrote.

The analysis comes as the Fed takes a more hawkish approach to fight inflation, which is at the highest level since 1982. Policymakers raised rates by a quarter-percentage point in March, and have since signaled support for a faster, half-percentage point increase at their May meeting.

Finish the Article at: https://www.foxbusiness.com/economy/bank-of-america-recession-shock-april-2022

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