Bank of America: ‘Recession Risks Rising,’ Putting Stocks at Risk Too

If you fear that interest-rate hikes by the Federal Reserve could push the economy into recession, you’re not alone. Bank of America (BAC) – Get Bank of America Corp Report has the same concern.

In the “next six months, rates shock morphs into recession shock,” BofA strategists, led by Michael Hartnett, wrote in a commentary.

BofA predicts the Fed will raise rates by 25 basis points at each of its remaining seven meetings this year, pushing the federal funds target range to 1.75% to 2%. This could upend the economy, the strategists said. “Recession risks [are] rising.”