Bank of America Chief financial investment strategist Michael Hartnett and Former Treasury Secretary Larry Summers both alerted Americans about the alarming state as inflation continues to increase and an economic downturn might currently be striking households.
“We’re in a technical recession but just don’t realize it,” Bank of America chief investment strategist Michael Hartnett wrote Friday in the bank’s Flow Show note, Business Insider reported.
He forecasted the economy will worsen.
“In short, inflation shock not over, rates shock just starting, growth shock coming, no release valve from peak in yields, bear market rally too consensus,” Hartnett wrote.
Summers, Treasury Secretary under President Bill Clinton, told CNN‘s “State of the Union” on Sunday that the United States is most likely to fall under an economic downturn quickly.
“I think, when inflation is as high as it is right now, and unemployment is as low as it is right now, it’s almost always been followed within two years by inflation, by recess,” he told host Dana Bash.
“I look at what’s happening in the stock and bond markets. I look at where consumer sentiment is. I think there’s certainly a risk of recession in the next year. And I think, given where we have gotten to, it’s more likely than not that we will have a recession within the next two years,” Summers predicted.
The former Clinton Secretary likewise stated that the United States will depend on the difficulty of an economic crisis..
“That is something we can manage. We have had them for the whole history of the country. We need to be prepared and to respond quickly if and when it happens,” he said. “But I think the optimists were wrong a year ago in saying we’d have no inflation, and I think they’re wrong now in being — if anyone’s highly confident that we’re going to avoid recession.”
The Department of Labor’s Consumer Price Index report released Friday revealed that general, the expense of items for city clients increased by 1% in May.
The expense of all products increased 8.6% from May 2021, marking the biggest 12-month boost given that December 1981.
H/T Just The News