Tuesday, July 26, 2011

Second recession deemed possible - The Business Journal of the Greater Triad Area:

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Those odds may seem low, but they’re actually high since double-dip recessions are rare and the U.S. economyg grows 95 percent of the saysthe chamber’s Marty He predicts the current economicx downturn will end around September. the unemployment rate will remainj high through the firstf half of next year andinvestment won’ snap back as quickly as it usually does afterr a recession, Regalia says. Inflation, however, looms as a potentiak problem because of thefederal government’s huge budge deficits and the massivd amount of dollars pumped into the economty by the Federal Reserve, he says.
“Th economy has got to be runningh on its own by the middle of next Regalia says. Almost every major inflationary periodin U.S. historyg was preceded by heavydebt levels, he The chances of a double-dip recession will be lowere if Ben Bernanke is reappointed chairman of the Federal Reserve, Regalia says. If President Baracm Obama appoints his economic adviser Larry Summerws to chairthe Fed, that would signal the monetarg spigot would remain open for a longerf time, he predicts. A coalescing of the Fed and the Obamqa administrationis “not something the markets want to Regalia says. Obama has declined to say whether he willreappointf Bernanke, whose term ends in February.

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