Bank of America Upgrades Economic Outlook, Now Predicts Fed Will Engineer 'Soft Landing' and Avoid Recession
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Bank of America originally predicted a mild recession in 2023, but has revised its forecast to be much more optimistic about the economy avoiding recession.
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The bank now believes the Fed can achieve a "soft landing" where inflation is tamed without sparking high unemployment or recession.
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Consumers have shown resilience in spending despite rate hikes, buoyed by high savings and wealth gains from the stock market and housing.
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Cooling inflation and still-strong economic growth point to a soft landing for the economy.
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Structural changes since the 2008 crisis, like less risky mortgages, make the economy more resilient to rate hikes.