From CNN Business: Deutsche Bank is the first big bank to forecast a US recession
New York (CNN Business)The Federal Reserve’s fight against inflation will spark a recession in the United States that begins late next year, Deutsche Bank warned on Tuesday.
The recession call — the first from a major bank — reflects growing concern that the Fed will hit the brakes on the economy so hard that it will inadvertently end the recovery that began just two years ago.
“We no longer see the Fed achieving a soft landing. Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession,” Deutsche Bank economists led by Matthew Luzzetti wrote in the report.
This isn’t really a surprise – even the Fed has said a lot over the last six months that they were worried about the timing and intensity of intervening driving the recovery into the ground.Report
Well, the thing that we all knew was coming has officially become something that even the banks acknowledge.
I’m just hoping for a small corrective “wringing out the rot” recession rather than something that deserves an adjective that will be helpful for distinguishing it from The Great Recession and The Great Resignation.Report