Source: Matt Egan, CNN, 4/26/22

Deutsche Bank raised eyebrows earlier this month by becoming the first major bank to forecast a US recession, albeit a "mild" one. Now, it's warning of a deeper downturn caused by the Federal Reserve's quest to knock down stubbornly high inflation. "We will get a major recession," Deutsche Bank economists wrote in a report to clients on Tuesday. The problem, according to the bank, is that while inflation may be peaking, it will take a "long time" before it gets back down to the Fed's goal of 2%. That suggests the central bank will raise interest rates so aggressively that it hurts the economy.

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