One of the most well-known financial institutions in the country has added yet another grim outlook on the nation’s financial state. Specifically, Bank of America warns that the US economy is at risk of shrinking in Q2. Moreover, the development comes after JP Morgan CEO, Jamie Dimon, spoke of similar concerns over the US economic outlook.
Conversely, Bank of America had recently identified various activities that could forecast a recession. Business Insider reported the bank’s statements that, “investors are too optimistic on rate cuts and not pessimistic enough on recession,” within a recent report.
Bank of America’s Worrying Forecast
The last few months for the American economy have certainly left a concerning outlook for the financial sector. Specifically, inflation continues forcing the hand of the Federal Reserve, as worries surrounding the international prominence of the US dollar fade quickly.
Now, one of the largest financial institutions in the country has added its rather unsettling perspective. Specifically, Bank of America warns that the US economy is at risk of shinking in Q2. Moreover, they have warned of a potential recession, similar to a warning from JP Morgan CEO, Jamie Dimon.
Alternatively, these statements arrive alongside their forecasting of a full-blown recession for the economy. Specifically, Reuters reported a client note from the Bank of America Global Research that shared the risk.
“This week’s data flow is consistent with our view that the U.S. economy slowed steadily over the course of 1Q 2023,” Bank of America said in the note. Additionally, it read, “As a result the hand-off to 2Q looks weak, we see meaningful risks of a contraction in GDP in 2Q.”
Moreover, the Bank of America also referenced data from April 3, showing a slow in US manufacturing activity. Furthermore, the data observed March had the lowest levels in nearly three years, coinciding with a plummet.