The US economy is currently resilient but will face a mild recession, Bank of America's Michael Gapen said.
"Unless bank stress gets worse and a credit crunch is revealed, it's harder to see where that hard landing risk is coming from," he said.
A correction of labor-market imbalances is needed to bring inflation back down to the Federal Reserve's 2% target, and that typically looks like a mild recession, Gapen told Yahoo Finance on Tuesday.
"The bank stress situation is in stasis – it's not getting a lot better, but it's not getting materially worse.
Underneath that, the employment and other spending data show an economy that's generally resilient," he said.
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