US Economy Faces Recession in 2024, Bank of America CEO Warns After Historic Rate Increase
Bank of America Chairman and CEO, Brian Moynihan, predicts that the US is likely to enter a mild recession in early 2024 due to the Federal Reserve’s delayed response to inflation.
Leading to aggressive interest rate hikes. Moynihan believes the Fed will probably cut rates by mid-2024. Once the recession is acknowledged. He points out that the recession prediction has been continually pushed forward. Possibly indicating the resilience of the American economy, driven by strong consumer spending and robust businesses.
Despite this, the recent 25 basis point rate hike has pushed the Fed Funds rate to 5.33%. The highest since 2001. Moynihan suggests that the Fed’s reaction to the 2020 pandemic may have been excessive. Leading to the current need for dramatic rate hikes. His outlook aligns with other influential voices, like Societe Generale economist Kokou Agbo-Bloua, who also forecasts a significant slowdown in the US economy in Q1 of next year.
Clever Robot News Desk 4th August 2023
Related Article
