The economic report released today by Congress and the Federal Reserve was bleaker than expected, which suggests that the nearing recession might be even deeper and more prolonged than even the most pessimistic analysts have predicted.

This is primarily about how the relative pronoun, ‘which’ is misused flouting the touch, rule. Then this is also about using a proper modifier, whether an adverbial one or appositive one to describe the main event.

(A) Which suggests that the nearing recession might be even deeper and more prolonged than even the most pessimistic analysts have predicted. – Which refers to either the Fed or the Congress or both; this is wrong. Which as a pronoun should refer to the report, which is too far away?

(B) Which suggests that the nearing recession might be deeper and more prolonged than that predicted by even the most pessimistic analysts—same problem as in A

(C) suggests that the nearing recession might be even deeper and more prolonged than that predicted by even the most pessimistic analysts. This is a fragment. The second verb suggests has no subject. Alternatively, we may say, this is double verbing of the subject Report

(D) suggesting that the nearing recession might be deeper and more prolonged than that predicted by even the most pessimistic analysts. –The use of the adverbial modifier correctly points to the economic report being bleaker. Correct choice

(E) a situation that is even more deep and prolonged than even the most pessimistic analysts have predicted.—one thing is we do not have a matching noun that the situation can define. Secondly, the recession is only nearing and yet to arrive. To describe an impending phenomenon with a present tense verb is illogical

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Comma + Verb -ing modifier is correctly used in (D) along with correct idiomatic usage more x than y, errors in other options are highlighted in RED
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The economic report released today by Congress and the Federal Reserve was bleaker than expected,
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(E) a situation that is even more deep and prolonged than even the most pessimistic analysts have predicted.

experts, a situation can refer "the economy is bleaker", but cannot refer to "the economic report was bleaker",
am I correct? please confirm