Deutsche Bank has cautioned that a “major recession” is on the horizon in a note to clients on Tuesday.
The Frankfurt-headquartered bank issued the stark warning in a report titled “Why the coming recession will be worse than expected,” in which it noted that the Federal Reserve must act more quickly and aggressively to prevent long-term damage to the economy.
“We will get a major recession,” Deutsche Bank economists wrote, noting that there “are good reasons to expect inflation will continue to surprise to the upside and in its stubbornness to remain well above the policy targets.”
“We regard it, therefore, as highly likely that the Fed will have to step on the brakes even more firmly, and a deeper recession will be needed to bring inflation to heel,” they continued.
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