An Overview of Current Situation of US Economy
In light of recent developments, the financial situation in the United States has been struggling, and the most recent warning from Bank of America made things worse. In which the nation’s top financial institutions have issued a warning that the US GDP could contract in Q2.
Along with the CEO of Bank of America, Jamie Dimon of JP Morgan has also dwelt on the same worries about the future of the US economy. The Bank of America recently listed a number of actions that could predict a recession in light of these warnings. “Investors are too optimistic on rate cuts and not pessimistic enough on recession,” the bank claimed in a report.
Bank of America’s Forecast
As was already noted, the American economy has been experiencing some difficulties lately, which has caused the financial sector’s outlook to be unsettling. It is important to note that the Federal Reserve is still being forced to act by inflation. Furthermore, concerns over the dominance of the US dollar abroad swiftly pass.
As one of the biggest financial organizations in the nation, Bank of America, warns that the US economy is at risk of contracting in Q2, an even more bleak picture has been added to the already troubling viewpoint. Similar to Jamie Dimon, CEO of JP Morgan, the financial firm has also issued a warning about a probable recession.
These warning remarks, on the other hand, appear with their predictions of a full-fledged recession for the economy. Specifically, Reuters reported recently on a client note from Bank of America Global Research that shared the concern.
According to the Bank of America report, the current week’s data flow is consistent with our belief that the US economy declined progressively during the course of 1Q 2023. It went on to say, “As a result, the hand-off to 2Q looks weak, and we see meaningful risks of a GDP contraction in 2Q.”