PPI - Bank of America's outlook reflects weaker growth and higher inflation for 2023

Bank of America global research outlined in a note that they are becoming more pessimistic about the viewpoint of next year as the financial institution has revised their outlook to reflect weaker growth and higher levels of inflation. BofA now expects the economy to grow by 1.5% YOY in 2023 and for core PCE inflation to end the year at 3.0% YOY. The Vanguard 500 Index Fund (NYSEARCA:VOO) which tracks the S&P 500 now sits lower by 16.9% YTD. Moreover, BofA stated: “We are growing increasingly pessimistic about next year as key inflation indicators continue to hint at a larger persistent component, and severe overheating in the labor market continues.” The note continued with: “This suggests that the Fed will have to push the unemployment rate up in 2023 and 2024. The market is also starting to respond to the Fed’s message, with the kind of financial tightening needed to eventually “achieve” that

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Bank of America’s outlook reflects weaker growth and higher inflation for 2023