Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession," Deutsche Bank economists led by Matthew Luzzetti wrote in the report. "It is now clear that price stability...is likely to only be achieved through a restrictive monetary policy stance that meaningfully dents demand," the Deutsche Bank economists wrote. The good news is Deutsche Bank is not forecasting a deep and painful recession like the past two downturns. During the Great Recession unemployment peaked at far higher levels of 14.7% in 2020 and 10% in 2009. This coming recession would allow inflation to get back towards the Fed's target by the end of 2024, Deutsche Bank said.

Source: CNN April 06, 2022 03:37 UTC