The recession refers to an overall decrease in economic activity that lasts for several months. According to their research, they expect U.S. Gross Domestic Product growth will slow to zero by the second half of 2023 since the
tighter financial conditions cool the economy.
Moreover, only a moderate rebound in U.S. Gross Domestic Product is expected in 2024. Due to the war in Ukraine and the Chinese lockdown situation, they expect a growth of 3.2% in the global economy.
According to BofA expert, the Fed will be forced to raise the interest rate above 4% since
they fell way behind the curve and are now playing a dangerous game of catch up.
Further risks can be identified respectively the growth in 2022 if lockdown situation continues in China.
Source: Reuters