A major recession is coming, Deutsche Bank warns – By Matt Egan (CNN Business) / April 26, 2022
New York (CNN Business) Deutsche Bank raised eyebrows earlier this month by becoming the first major bank to forecast a US recession, albeit a “mild” one.
Now, it’s warning of a deeper downturn caused by the Federal Reserve’s quest to knock down stubbornly high inflation.
“We will get a major recession,” Deutsche Bank economists wrote in a report to clients on Tuesday.
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 that it hurts the economy.
CONTINUE > https://www.cnn.com/2022/04/26/economy/inflation-recession-economy-deutsche-bank/index.html
