Bank of America strategists warned in blunt language: "'Inflation shock' worsening, 'rates shock' just beginning, 'recession shock' coming."The ultra-tight job market and high inflation are two sides of the same coin, Axios chief economic correspondent Neil Irwin notes.
The super tight-job market is fueling higher wages and strong demand — which is why the Fed is going to have to move more aggressively than it has in decades to try to quash inflation.The recession calls are about what might happen later this year or in 2023 — not a comment about current conditions. A "Zeitgeist" section added these snappy client quotes: "can't make my mind up if it's recession or stagflation" and "recession now soooo consensus."
Deutsche Bank also warned of a downturn, saying in a research note on Tuesday that "we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession," per
To be followed by 'Big Bank bailout shock' a year later.
Just remember back Joe said this was all transitory and no serious economists were worried about inflation? Good times.
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