Experts warn of a looming "growth recession" in the US economy.
Bank of America's chief economist, Michael Gapen, has revised his recession forecast for the US economy, now predicting a "softer" downturn in 2024 rather than a mild recession in the first half of this year. Gapen believes the Federal Reserve will need to raise interest rates to tame inflation, which remains above the central bank's 2% target rate. However, he has softened the magnitude of the downturn due to a rapid rebound in labor supply and the Biden Administration's efforts to boost economic growth. Gapen now expects US GDP to rise 1.1% in Q4 2022, but lowered his forecast for 2024 GDP growth from 0.9% to 0%.