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BIDEN ECONOMY: Now 2nd Major Bank Agrees with TGP Warnings of a Biden Recession

At the same time that Joe Biden and the Democrats are saying that the Biden economy is amazing, megabanks are predicting that we are headed into a recession. But maybe you could describe the Biden economy as amazing since it’s amazing that we are not already in a recession.

Deutsche Bank was the first to report the potential for a recession after the February GDP report was lower than it was in October of 2021. They reported that unless something turned around, we were headed into a recession. Now, a second bank, The Bank of America is making the same prediction. Couple that with high energy prices and inflation and we are on a collision course with disaster. But, hey, at least there are no mean tweets, right?

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.

 

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