U.S. economy may suffer mild recession from 'inflation tax'

The Bank of America has warned that the U.S. economy may experience a slight recession in the second half of 2022, due to an "inflation tax" that depresses consumers and the Federal Reserve's aggressive monetary policy. Business Insider, Fortune and other foreign reports, Bank of America chief economist Michael Gapen published a research report on the 13th, pointing out that the bank originally predicted that the US economy would only face a growth recession (that is, the economic growth rate is still higher than zero, but lower than that of the United States.) Silver’s estimated potential growth rate), but many forces are colliding, and economic momentum may be slowed down more than previously thought. The Fed tends to accelerate the pace of interest rate hikes, resulting in a tightening of financial conditions. Bank of America, which originally believed that the United States is likely to escape the fate of recession, decided to revise its previous forecast. Bank of America now forecasts that U.S. gross domestic product (GDP) could decline by 1.4% in the fourth quarter of 2022 from a year earlier, and grow by 1% in 2023.