Bank of America’s Official Predicts a Dire Recession that Will See Crypto Outperform Other Investments

Despite tightening of monetary policy by the Fed, Bank of America (BofA) foresees a dire recession.

As per a recent report published by digital media outlet ‘Reuters’, Bank of America or BofA has predicted a dire economic recession, it is despite Fed’s tightening of monetary policy.

Since the outbreak of Covid-19, the US economy, like many other economies around the world, is dealing with many financial issues. One of them being inflation. The inflation rate at the moment is at its highest level in the past 40 years. To curtail rising inflation, the Fed has recently been taking strong measures.

Despite measures being taken Michael Hartnett, chief investment strategist at Bank of America stated in his weekly note that the US economy could sink further following “rates shock” and” inflation shock”.

Last week the Fed signaled, it is likely that they would, from its $9 trillion balance sheet, begin slashing assets at a rate twice that of last “quantitative tightening” exercise. Further, as minutes of March FOMC meeting suggests, most of the Central Bank Commissioners are of the view that the interest rate should be increased by 50 basis points as part of Fed’s plan to put a halt on histrionic inflation rate.

All of this comes, despite Jeremy Powell, Chair of the Federal Reserve of the United States, noted in a statement that:

“The American economy is very strong and well-positioned to handle tighter monetary policy”

Though he did concede:

“Inflation is likely to take longer to return to our price stability goal than previously projected.”

In the Reuters report, Michael Hartnett noted that amidst rising inflation it is cash, Commodities, and crypto that is going to outperform stocks and bonds. Because of their inflation proof nature. It is to be noted that people’s interest in crypto is observed to have already risen due to high inflation rate. As masses looks for more inflation proof investments.

 

The post Bank of America’s Official Predicts a Dire Recession that Will See Crypto Outperform Other Investments appeared first on Ripple Coin News.

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Author: Gracie Perez

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