Deutsche Bank , Warns a Major Recession Is Coming.<br />'Newsweek' reports that Deutsche Bank <br />has warned of an impending <br />"major recession" in the U.S. .<br />The bank reportedly pointed to <br />the difficulties the Federal Reserve <br />has experienced trying to tackle inflation. .<br />The bank reportedly pointed to <br />the difficulties the Federal Reserve <br />has experienced trying to tackle inflation. .<br />A recent Deutsche Bank report to clients was titled, , 'Why the coming recession <br />will be worse than expected.'.<br />The report warned that the Fed will have to continue raising interest rates in a way that will harm the economy and result in a major economic downturn. .<br />In March, the annual rate <br />of inflation was 8.5% after remaining<br />stubbornly high for months. .<br />According to Deutsche Bank's report, it is , "highly likely that the Fed will have to step on <br />the brakes even more firmly, and a deep recession <br />will be needed to bring inflation to heel.".<br />According to Deutsche Bank's report, it is , "highly likely that the Fed will have to step on <br />the brakes even more firmly, and a deep recession <br />will be needed to bring inflation to heel.".<br />Economists with Deutsche Bank suggest that the Fed is in <br />a worse spot now than it had been in the 1980s, <br />the last time it significantly raised interest rates. .<br />Economists with Deutsche Bank suggest that the Fed is in <br />a worse spot now than it had been in the 1980s, <br />the last time it significantly raised interest rates. .<br />However, CNN reports that both Goldman Sachs and <br />UBS believe that a recession is not an inevitability.<br />In an April 22 report, Goldman Sachs economists wrote, , "We do not need a recession but probably do need <br />growth to slow to a somewhat below-potential pace,<br /> a path that raises recession risk.".<br />On April 25, the chief investment officer at UBS Global Wealth Management, Mark Haefele, wrote, "Inflation should ease from current levels, and we <br />do not expect a recession from rising interest rates."
