Major Bank Raises Recession Risk To 30% In Next Year

CNBC reports:

Recession risk is rising, according to Bank of America. Based on the most recent data, the bank’s global economist now sees a greater than 30% chance of a recession in the next year.

“Our official model has the probability of a recession over the next 12 months only pegged at about 20%, but our subjective call based on the slew of data and events leads us to believe it is closer to a 1-in-3 chance,” Bank of America’s head of U.S. economics Michelle Meyer said in a note to clients.

Uncertainty around the U.S.-China trade war and a global economic slowdown have caused interest rates to tumble and weighed on the major stock averages in recent weeks.