Bank of America analyst warns ‘recession shock’ to hit US economy

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A Bank of America analyst warned that the U.S. economy is deteriorating fast and could push the country into a recession just three days after Deutsche Bank predicted the fall to come in 2023 as the Federal Reserve tightens interest rates to tame surging inflation.Β Β 

BofA chief investment strategist Michael Hartnett wrote in a note to clients: ”Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming.’

He added that in this contextΒ cash, volatility, commodities and cryptocurrencies could outperform bonds and stocks, a typical precursor to an economic recession.

The Federal Reserve on Wednesday signaled it will likely start culling assets from its $9 trillion balance sheet at its meeting in early May and will do so at nearly twice the pace it did in its previous ‘quantitative tightening’ exercise as it confronts inflation rates running at a four-decade high hitting nearly 8 percent.

A large majority of investors also expect the…

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