Deutsche Bank has projected that a “more severe recession” is likely to occur in the near future and earlier than it had previously predicted amid aggressive interest rate hikes by the Federal Reserve and signs of an economic slowdown.
“More than two months ago, we forecasted that the U.S. economy would tip into a recession by end-2023,” Deutsche Bank Chief U.S. economist Matt Luzzetti wrote in a note to clients on Friday.
“Since that time, the Fed has undertaken a more aggressive hiking path, financial conditions have tightened sharply and economic data are beginning to show clear signs of slowing. In response to these developments, we now expect an earlier and somewhat more severe recession.”…