The Bank of America has been warning that, the high inflation is possessing a credible threat to the economic recovery that has started just two years ago. Michael Hartnett, chief investment strategist of Bank of America said, the inflation shock has been worsening and the rate shock is just beginning and the recession shock has been coming.
This warning has come ahead of a new government report that has been showing the consumer prices increased by 8.5 percent in the month of March 2022, which has been the fastest pace since the month of December 1981, and there had record increase in the prices in everything starting from the new vehicles to the salad dressing.
Michael Hartnett also said that, the inflation has been out of control and this inflation is going to be causing the recessions. However the last recession had been sparked by the corona virus pandemic and the economic expansions have often been ended by the Federal Reserve that has been affecting on the brakes for the purpose of fighting the increasing inflation.
The markets are also bracing for the federal government for rapidly increasing the interest rates at the rapid speed in the decades and for getting the prices under the control and the risk has been that, the Central Bank is going to do too much and sinking the economy of the country.
