Deutsche Bank is the first major bank to forecast a US recession. It says inflation is peaking, but it will take a long time to get back to 2%. That suggests the Fed will raise interest rates so aggressively that it hurts the economy. The good news is that Deutsche Bank sees the economy rebounding by mid-2024.
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Deutsche Bank warns of deep recession
Deutsche Bank warns of a deeper recession in the US caused by the Federal Reserve's quest to address inflation.
Deutsche Bank Sees 5%-6% Fed Target Rate and Deep U.S. Recession
(Bloomberg) -- The Federal Reserve is likely to need to engage in the most aggressive monetary tightening since the 1980s to tamp down an inflation rate at a four-decade high, which will lead to a deep U.S. recession next year, Deutsche Bank AG economists warned.Continue Reading. Read more on Global Economics by BloombergQuint.
Deutsche Bank is now forecasting "a major recession," CNN reports."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 t