Investment banks are sounding the recession alarm — and Main Street is starting to fret about economic slowdown as well

Wall Street's coverage of the Federal Reserve meeting last week focused on the recession.

Equity chiefs like Morgan Stanley's Mike Wilson, economists like Wells Fargo's Jay Bryson, and billionaires like Leon Cooperman all warned this week that an economic downturn is becoming more likely.

Wilson said on CNBC's 'Closing Bell' last week that rising rates raise the risk of a recession. The Fed doesn't have a lot of options as they hike into a slowdown.

The Fed is trying to control inflation. There's a chance that the US will go into a recession if the economic contraction leads to a rise in unemployment and a decline in business activity.

The bank predicted a downturn Friday.

Mark Haefele, the Swiss bank's chief investment officer, said that the more aggressive line by central banks added to the challenges for both the economy and the stock market. Achieving a soft landing for the US economy appears increasingly challenging as the risks of a recession are rising.

Ordinary Americans are beginning to worry about the economy as well.

The Michigan consumer sentiment index fell to a record low of 50.2 points this month, far below analysts' initial prediction of 58.

Jeffrey Roach said that the crash in sentiment meant that consumers were more and more worried about the future. If high prices get entrenched in the economy, thecession risks are going to rise.

Consumer sentiment is usually used as a gauge of future consumer spending, which accounts for three quarters of GDP.

Americans are spending less at stores and restaurants due to the rising cost of living. Consumers tend to spend less and save more when they are concerned about the economy.

Investment bankers can learn a lot from Main Street.

He said that they needed to listen to what consumers said. We need to keep an eye on what consumers do.

A portfolio manager who's beaten 89% of peers this year says avoiding a recession would be a pleasant surprise as risks to the economy mount and the housing market begins to weaken.