Bank Of America Makes Recession Announcement That Will Scare You


Since Trump became president, many Americans have been wondering when his financial policies, created to benefit the rich, and the trade war will start to take a toll on poor, working, and middle class Americans.

On Monday, CNBC released a report showing the latest data pointing to a 30 percent chance of a recession in the next year.

Bank of America global economist Ethan Harris said in a note to clients on Monday:

‘Our official model has the probability of a recession over the next 12 months only pegged at about 20% but our subjective call based on the slew of data and events leads us to believe it is closer to a 1-in-3 chance.’

According to CNBC:

‘Uncertainty around the U.S.-China trade war and a global economic slowdown have caused interest rates to tumble and weighed on the major stock averages in recent weeks.’

Although last month’s job report showed a strong consumer, business investment policy is low due to new tariffs and fiscal policy uncertainty.

Harris said economic indicators are “flashing yellow,” signaling that a recession is coming.

CNBC reported:

‘For one, the yield on the 10-year Treasury yield dipped below the yield on the 3-month, inverting part of the yield curve.’

‘This inversion although a recession indicator, is not as worrisome as an inversion of the 2-year yield and the 10-year yield, which has yet to occur’

In addition, Harris said there are three typical indicators that have predicted various recessions: auto sales, industrial production and aggregate hours worked. All three are currently at levels reached right before previous recessions.

According to CNBC:

‘Harris said the “bright spot” of the economy is that initial jobless claims remain at low levels.’

Featured image is a screenshot from Twitter