Bank of America main economist: US is on edge of recession| MENAFN.COM

Wednesday, 05 October 2022 08:42 GMT

Bank of America main economist: US is on edge of recession


(MENAFN) In step with Bank of America's newest top economist, the U.S. economy is on the edge of a stagnation.

Michael Gapen, the chief of U.S. economics at Bank of America, informed FOX Business that he expects the Federal Reserve to inadvertently cause a recession in 2022 as a reason of its conflict with inflation.

"This cycle probably ends in a mild downturn," Gapen went on to say. "How do I come to that? It's basically just history. It's really hard to achieve a soft landing."

Even though Fed politicians are counting on finding that elusive sweet spot – known as a soft landing – as they increase interest rates at the fastest speed in 30 decades, history displays that the U.S. central bank often grapples to successfully strike a balance amid tightening rule and preserving financial expansion.

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