Bank of America last week reportedly warned clients that its analysis of the U.S. economy points to a likely difficult recession beginning early next year.
The bank said in a client meeting that “nonfarm payrolls will begin shrinking early next year, translating to a loss of about 175,000 jobs a month during the first quarter,” CNN reported on Monday.
“Charts published by Bank of America suggest job losses will continue through much of 2023,” the news network claimed.
Analysts have been raising alarm bells that the Federal Reserve’s aggressive attempts to tamp down spiraling inflation—via increased interest rates—could lead to a significat recession in the near term.
Michael Gapen, the chief U.S. economist at Bank of America, told CNN that the bank is projecting ” a harder landing rather than a softer one” starting next year.