Posted on 06/23/2022 4:23:18 AM PDT by EBH
Bank of America has sounded the alarm on the US economy, predicting growth will stall next year and that the likelihood of a recession will surge.
In a note published on Friday — two days after the Federal Reserve hiked interest rates by 75 basis points — analysts said the Fed was too slow to aggressively tackle inflation, which is running at a 40-year high, and abruptly scrambling to get on top of it.
Now the bank sees GDP growth slowing to nearly zero by the second half of 2023 because of the influence of tighter financial conditions. While the risk of recession this year is low, Bank of America sees a 40% probability starting next year. And 2024 isn't looking much better, as analysts see only "a modest rebound" by then.
"Our worst fears around the Fed have been confirmed: they fell way behind the curve and are now playing a dangerous game of catch up," the note said.
Despite the Fed's more hawkish stance, the bank doesn't see inflation cooling enough to get down to the central bank's 2% target. Instead, it will persist around 3%, it said. While supply problems and demand for goods will ease, inflation expectations are anchoring at higher levels and wage pressures will likely be tough to reverse.
(Excerpt) Read more at finance.yahoo.com ...
Which part of the “US economy”?
The extractive/productive part, or the usury part?
“Never underestimate Joe’s ability to **** things up.”
Boy Howdy, do I agree with that quote from President Sparklefarts.
However as noted in my tagline, my opinion of the Republican Party is the same.
Yes. I’ve got a nice vehicle that is for sale and has been for weeks.
Just can’t believe it wouldn’t have sold say last year, I think people are already feeling the effects of a slowing economy (well high gas as well).
Agreed. The redfine "recession" notion is making the rounds. Started by Treasury Secretary Yellen.
If you think banks know what will happen in the future, remember 2008. No, the housing market won’t collapse, everything will be fine.
Our betters are geniuses. Just ask them…
Yep. 1st qtr was negative growth. The 2nd qtr will complete the transition. We are in deep doo doo with slo Jo.
This is one of the biggest scams ever. Joe Biden is shoving green energy down the throats of Americans.
For what? Money. For whom? China, and some Biden apparatchiks.
Never mind that wind and solar cannot replace fossil fuels under the current level of demand. California, which is mandating a movement to 100% electricity is anticipating rolling blackouts again this summer. Despite its boastfulness about green energy, 42% of California energy comes from fossil fuels.
Its current energy mix stands at 49.6% renewable energy generation, approximately 8% nuclear and only about 42% of energy comes from fossil fuels, such as crude oil and natural gas.
Biden’s green energy means ending dependency on US oil and becoming entirely dependent on China
Posted by DrJohn on 22 June, 2022 at 8:30 am. 4 comments already!
The goal is to make California see 100% of electricity come from “green” sources by 2045. That means a lot of solar panels and lithium batteries. That means dependency on China.
China owns the global battery race. China dominates the solar panel market.
I think the Fed will do one more .75 interest rate increase, then they will cut interest rates after that. The jig is up.
No mean Tweets though…
We'll find out when then next quarterly growth figures come out.
I would tend to agree with you.
We certainly are for real, it’s just a matter of number fudging or not.
People in the middle, the ones who voted for Biden because they didn’t like Trump’s personality, will be voting for Trump in droves.
I’ve noticed that prices of necessities are rising while non-essentials are falling - and I believe the latter is because there is a glut of goods while people have no more spending money. I’ve sold things online and for some items the demand is practically gone - no matter how low you go.
Lots of talk about that...well, whispers actually. Many factors go into this cycle that we have not had before.
2007/8 if I recall correctly was because of the credit markets freezing up.
The biggest issue I see right now is the supply chain issues that are ongoing. At least to me, this is not ordinary inflation because ‘goods’ are not moving or available in many cases. It has little to do with consumer spending if producers cannot produce.
All this is being done to benefit China.
Biden is owned by the chinese so he will do what ever his masters tell him to do.
Numbers released at the end of the quarter are preliminary and are subject to change. Growth for the last quarter was a negative 1.2%. That may change up or down but even if it does show a positive growth, a recession is coming. In many ways it may be unlike any recession we've had in the past so it could be long and deep, or short and shallow. We'll have to see.
Considering everything occurring, I expect long and deep.
Too much easy money for far too long.
We gave an alcoholic a 750 of Jack everyday since 2008…
Withdrawal is painful and dangerous.
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