Deutsche Bank was the first financial institution to officially predict a mild recession earlier this year. The move was followed by similar claims from other banks. Deutsche is raising the stakes now claiming a major recession is ahead for the US. This is from CNN:
“We will get a major recession,” Deutsche Bank economists wrote in a report to clients on Tuesday.
The problem, according to the bank, is that while inflation may be peaking, it will take a “long time” before it gets back down to the Fed’s goal of 2%. That suggests the central bank will raise interest rates so aggressively that it hurts the economy.
“We regard it…as highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel,” Deutsche Bank economists wrote in its report with the ominous title, “Why the coming recession will be worse than expected.”
Economists forecast a recession to begin in late 2023 or early 2024.
Thank Progressive Democrat policies. They are ruining the world.