BofA: Stagflation is coming in the second half of 2021

Bank of America is full of good news these days.

First, the financial institution warned of soaring inflation.

Then, the bank stated that hyperinflation is coming this summer.

Now BofA anticipates stagflation slamming into the financial markets in the second half of 2021.

According to Bank of America’s CIO Michael Hartnett, this is what the next six months could look like:

• Inflation turns into stagflation.
• Quantitative easing turns into quantitative tightening.
• A combination of rising interest rates and regulations.
• Falling purchasing managers’ indexes (PMIs).

The bank also said there is a possibility that President Joe Biden’s infrastructure deal collapses, U.S. consumption peaks, and a new Federal Reserve Chair is nominated at the end of the year.