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Bank Of America Warns A "Recession Shock" Is Coming

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Title : Bank Of America Warns A "Recession Shock" Is Coming
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Bank Of America Warns A "Recession Shock" Is Coming

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FILE PHOTO: A Bank of America sign stands on the side of a building in New York  

Reuters: A "recession shock" is coming, BofA warns 

LONDON (Reuters) - The macro-economic picture is deteriorating fast and could push the U.S. economy into recession as the Federal Reserve tightens its monetary policy to tame surging inflation, BofA strategists warned in a weekly research note. 

"'Inflation shock' worsening, 'rates shock' just beginning, 'recession shock' coming", BofA chief investment strategist Michael Hartnett wrote in a note to clients, adding that in this context, cash, volatility, commodities and crypto currencies could outperform bonds and stocks. 

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 running at a four-decade high.  

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WNU Editor: Inflation always devastates the productive and vulnerable segments of society. If you take into account GDP numbers and the real inflation numbers (link here from Shadowstats), I would say the U.S. is already in a recession.



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