Bank of America (BofA) economists predict a recession in the United States by the end of 2023. BofA CEO Brian Moynihan says the American economy will be hit by a mild downturn in the second half of the year.

According to the preliminary estimates of Bank of America’s research team, the United States will remain in a state of mild recession until the first quarter of 2024. 

In late 2022, the lenders forecast a recession in the United States in 2023. However, the situation is far from getting out of control.  “It’s basically third quarter this year, fourth quarter, this year into first quarter, a mild recession. And unemployment gets up in high 4 percent range, still very low by historical norms,” Moynihan explained. For the United States, this is, in fact, a low level of unemployment. 

Last month, Fed Chair Jerome Powell assumed a soft recession in 2023. US President Joe Biden had also warned about such a turn of events, foreseeing serious consequences for the American economy.