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US economy on brink of 'major recession,' Deutsche Bank warns
Economy ‘probably’ already in a recession: Expert
Morgan Creek Capital Management Mark Yusko discusses Federal Reserve’s response to inflation.
Deutsche Bank became the first Wall Street firm this month to warn of a looming economic recession in the U.S.
Now, the bank's economists are doubling down on their prediction, forecasting a severe recession within the next two years as the Federal Reserve moves to tame the hottest inflation in four decades with a series of mega interest rate hikes.
"We will get a major recession, but our strongly held view is that the sooner and the more aggressively the Fed acts, the less longer-term damage to the economy there will be," the authors wrote in an analyst note published this week.
ONE OF BIDEN'S FAVORITE ECONOMISTS SEES A HIGH CHANCE OF RECESSION IN NEXT 2 YEARS
Deutsche Bank had previously projected a "mild" recession, but darkened its forecast even more because the economists believe that inflation is so high, the Fed will have no choice but to dramatically raise the benchmark federal funds rate in order to crush consumer demand.