U.S. has 40% chance of tumbling into recession next year, Wall Street analysts say

The U.S. has a 40% chance of entering a recession in 2023, Wall Street analysts say, noting that the odds of a downturn happening this year are low.

In a client note, Bank of America Global Research also criticized the Federal Reserve for failing to move earlier to raise interest rates in an effort to curb inflation. 

"Our worst fears around the Fed have been confirmed: They fell way behind the curve and are now playing a dangerous game of catch up," analysts wrote. "We look for GDP growth to slow to almost zero, inflation to settle at around 3% and the Fed to hike rates above 4%."