Analysis-Wall Street heavyweights warn against ‘Goldilocks’ hopes

Published by
Reuters

By David Randall NEW YORK (Reuters) – Some of Wall Street’s biggest names are throwing cold water on expectations that the U.S. economy will escape a recession in 2023, as hopes of a so-called Goldilocks scenario of easing inflation and resilient growth propels stocks higher. Banks and asset managers that have reiterated recession calls include BlackRock, Wells Fargo and Neuberger Berman, with many warning the Federal Reserve is unlikely to force inflation lower without hurting economic growth. The odds are “too high on Goldilocks; there’s still no easy way out,” analysts at BoFA Global Resear…

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