Bank of America's top global strategist warns of growing bubble risk in the stock market as the economy heads for a no-landing scenario — and shares 3 charts showing the market could be headed for trouble
William Edwards
Apr 20, 2024, 4:30 PM GMT+8
Michael Hartnett, Bank of America's top global strategist, thinks a no-landing scenario is the most-likely outcome for the US economy in the months ahead. That means the labor market would remain strong, but inflation would also stay above the Federal Reserve's long-term goal of 2%.
While that's fine for now, Hartnett warns it's a path that eventually leads to trouble for the economy and stocks. The longer inflation stays elevated, the longer the Fed has to keep policy restrictive or even tighten further, putting the economy at risk of a recession as businesses and consumers slow borrowing and spending.