Is a ‘mild recession’ coming?
By Kelsey Ramirez Sponsored by Credible – which is majority owned by our parent, Fox Corporation, and is solely responsible for its services. Bank of America’s updated economic forecast said a "mild recession" could occur in the U.S. before the end of this year, cooling rising prices. (iStock)
Will there be a US recession in 2022?
Bank of America (BofA) adjusted its economic forecast on Wednesday to show that a "mild recession" could occur in the U.S. as soon as this year. BofA predicted that real GDP in the fourth quarter of 2022 will decline by 1.4%, followed by a 1% increase in 2023.
Did Bank of America just predict a recession?
Bank of America on Wednesday became the latest financial institution to predict an oncoming recession in the U.S. economy sometime later this year—joining the likes of Deutsche Bank, Goldman Sachs and Nomura—a forecast that comes on the same day when the Labor Department released data showing inflation in the U.S. hitting another 40-year-high.
Will the Fed’s war on inflation trigger a recession?
According to Bank of America’s newest chief economist, the answer is yes. Michael Gapen, the head of U.S. economics at Bank of America, told FOX Business that he expects the Federal Reserve to inadvertently trigger a downturn this year with its war on inflation. "This cycle probably ends in a mild downturn," Gapen said. "How do I come to that?