Why Deutsche Bank Insists on the Inevitability of an Economic Downturn, Recession or Not

Odds of a U.S. recession have been hotly debated with the labor market and consumer spending showing resiliency even after some of the most aggressive interest rate hikes in history. But Deutsche Bank sees a 100% probability the U.S. will have one.

The short-term benchmark fed funds rate stands at the highest level since 2006, but inflation’s still twice the Fed’s goal. Fed Chairman Jerome Powell warned after the Fed’s policy committee meeting on Wednesday more rate hikes will likely be necessary to further cool inflation.

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