TGP first reported of a pending recession in the works in March. Now two major banks are warning of a likely recession as well.
In early March after initial numbers for February’s GDP were released, TGP warned of a pending recession in the works.
Then in early April, we saw more of the same. The US GDP was lower in February than it was in October. A pending recession was increasingly likely.
A day after TGP’s second warning of a recession, Deutsche Bank reported the potential that a recession was in the works. Now only three days later, an expert from Bank of America is warning of a recession in the US.
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.
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 context 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 central bank to hike its key interest rate by 50 basis point.
Deutsche, the first major bank to offer the negative forecast on Tuesday, said the recession will be ‘moderate,’ but it would serve as yet another blow to already struggling Americans, CNBC reported.
‘The US economy is expected to take a major hit from the extra Fed tightening by late next year and early 2024,’ the bank’s economists said in a note to clients.
It’s clear that Joe Biden has no idea what is going on. Whoever is leading him also has no idea what’s going on and the people in his administration have no idea what’s going on. They destroyed America’s energy independence. The most logical reason for this is because American politicians are bribed or blackmailed or both. The three Bs.
Biden’s foreign policy is even worse. China and the World Economic Forum want a weak and compliant United States and Biden is doing everything he can to give them that.
With high energy costs, supplies not available for almost all products, and inflation at a 40-year high, it’s no wonder the US is facing recession.