Deutsche Bank , Warns a Major Recession Is Coming.
'Newsweek' reports that Deutsche Bank has warned of an impending "major recession" in the U.S. .
The bank reportedly pointed to the difficulties the Federal Reserve has experienced trying to tackle inflation.
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The bank reportedly pointed to the difficulties the Federal Reserve has experienced trying to tackle inflation.
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A recent Deutsche Bank report to clients was titled, , 'Why the coming recession will be worse than expected.'.
The report warned that the Fed will have to continue raising interest rates in a way that will harm the economy and result in a major economic downturn.
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In March, the annual rate of inflation was 8.5% after remaining stubbornly high for months.
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According to Deutsche Bank's report, it is , "highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel.".
According to Deutsche Bank's report, it is , "highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel.".
Economists with Deutsche Bank suggest that the Fed is in a worse spot now than it had been in the 1980s, the last time it significantly raised interest rates.
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Economists with Deutsche Bank suggest that the Fed is in a worse spot now than it had been in the 1980s, the last time it significantly raised interest rates.
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However, CNN reports that both Goldman Sachs and UBS believe that a recession is not an inevitability.
In an April 22 report, Goldman Sachs economists wrote, , "We do not need a recession but probably do need growth to slow to a somewhat below-potential pace, a path that raises recession risk.".
On April 25, the chief investment officer at UBS Global Wealth Management, Mark Haefele, wrote, "Inflation should ease from current levels, and we do not expect a recession from rising interest rates."
