The US is expected to face a moderate recession in the second half of 2023, according to Bank of America CEO Brian Moynihan. The banker sees a slight downturn in the US in the third quarter of the year. The recession was supposed to start in 2022 but the forecast was shifted forward. “Our baseline scenario is a mild recession in the third and fourth quarter of 2023, into the first quarter of 2024,” Moynihan said in an interview with a TV channel. “And unemployment gets up in the high 4% range, still very low by historical norms,” he added. The Bank of America chief executive also noted that the Fed had managed to stabilize the market so far but it might struggle to keep inflation under control. So, the US financial system may face more challenges ahead. In May this year, Federal Reserve Chairman Jerome Powell warned of a possible recession risk but expressed hopes for a “soft landing” for the US economy. Earlier, the Fed raised its key interest rate to 5–5.2%, the highest level since 2006.
