Bank Of America Warns of Dire Recession That Could See Cryptos Rocketing to New Highs

As the U.S. economy continues to reel under the pressure of mounting inflation, the Bank of America (BofA) foresees a mammoth recession as the FED moves in to tighten its monetary policy.

Brace for Recession

As per a report by Reuters, BofAs chief investment strategist Michael Hartnett warned in a weekly note that the US economy could sink lower following what he termed asinflation shock and rates shock.

Last week, the Federal Reserve signaled it will likely start slashing assets from its $9 trillion balance sheet at twice the rate it did on its previous quantitative tightening exercise. Furthermore, according to minutes from a March FOMC meeting, a majority of commissioners want the central bank to hike its key interest rate by 50 basis points, as part of the plan to lower the four decade-high inflation figures.

This comes even as Jeremy Powell stressed that The American economy is very strong and well-positioned to handle tighter monetary policy on Wednesday. This time, however, he noted that Inflation is likely to take longer to return to our price stability goal than previously projected.