The United States is facing an economic downturn that could begin in the third quarter of 2023 and last until the first quarter of 2024, according to Bank of America (BoA) CEO Brian Moynihan.
Speaking at the Financial Review’s Business Summit on Tuesday, he predicted that the downturn would be mild and that interest rates would begin to fall in the second quarter of next year.
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“In the grand scheme of things, it’s a very slight recession. “I don’t believe there will be a severe recession,” Moynihan was quoted as saying by Reuters. “It will be more of a technical recession than a deep drop in the United States,” he said.
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A ‘technical recession’ is defined as two consecutive quarters of negative growth.
Moynihan also stated that the Wall Street bank’s forecasters estimate quarterly contractions of 0.5%-1%.
The US Federal Reserve has raised interest rates several times in the last year in an attempt to cool record inflation. The regulator approved a quarter-point interest rate increase in February, the smallest in several months, as consumer price growth appears to be slowing.
