Economics
A Mild US Recession Is Coming This Year, Bank of America Economists Say
- Wells Fargo Investment Institute, Nomura also see recession
- BofA estimates Fed to raise rates by 75 basis points in July
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Bank of America Corp. economists forecast a “mild recession this year” in the US, saying services spending is slowing and hot inflation is spurring consumers to pull back.
“A number of forces have coincided to slow economic momentum more rapidly than we previously expected,” analysts led by Michael Gapen, who recently joined the firm as head of US economics, said in a report Wednesday. These include inflation from food and energy prices that leave households with less available for discretionary purchases, and tighter financial conditions, with higher mortgage rates denting affordability.