Deutsche Bank has just revealed a warning, saying that the US recession is imminent. Check out the latest details about this below.

New warning on the US recession is out

An economist from one of Europe’s largest banks predicts that the US may face a difficult landing and recession.

David Folkerts-Landau from Deutsche Bank believes that the Federal Reserve’s quick succession of interest rate hikes may result in a recession, despite the intended goal of reducing inflation. This was reported by USA Today.

“The U.S. is heading for its first genuine policy-led boom-bust cycle in at least four decades…

The inflation we see was induced largely by expansive fiscal and monetary policy, and the aggressive rate hikes needed to tame that have now materialized. Avoiding a hard landing would be historically unprecedented.”

According to the analysis by Folkerts-Landau’s team, the Fed is likely to cause a decrease in inflation leading to a recession, which will eventually lead to a rate cut by March 2024.

The analysts anticipate that the Fed will reduce rates in a similar manner to how they raised them in the past year and a half, possibly in increments of 50 to 75 basis points until they reach 2.625%.

The Deutsche Bank analysts made sure to highlight the fact that artificial intelligence (AI) could, later in the decade, be the one source of growth for the US in otherwise stagnant economic conditions.

“Given a poor cyclical outlook, low productivity, and declining demographics, we are in desperate need of a new source of growth…”

The financial services company and multinational investment bank worth $1.4 trillion is currently seeking a crypto custody license in Germany.

In a recent report by Bloomberg, Deutsche Bank AG – the largest bank in Germany and the second largest in the European Union – is requesting regulatory approval to provide custody services for digital assets, such as cryptocurrencies, in Germany.

David Lynne, runner of Deutsche Bank AG’s commercial unit, stated the following:

“We’re building out our digital assets and custody business.

We just put our application into the BaFin for the digital asset license.”

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