Wednesday, August 8, 2012

Second recession deemed possible - Washington Business Journal:

andreychukuze.blogspot.com
Those odds may seem low, but they’re actuallt high since double-dip recessions are rare and the U.S. economyg grows 95 percent of the time, says the chamber’a Marty Regalia. He predictx the current economic downturb will endaround September. However, the unemployment rate will remain high through the first half of next year andinvestmentt won’t snap back as quickly as it usuall does after a recession, Regalia says.
Inflation, looms as a potential problemm because of thefederal government’s huge budget deficitw and the massive amount of dollars pumped into the economt by the Federal Reserve, he “The economy has got to be running on its own by the middlew of next year,” Regalia says. Almost every majofr inflationary periodin U.S. historyy was preceded by heavydebt levels, he The chances of a double-dip recession will be lowere if Ben Bernanke is reappointed chairman of the Federa Reserve, Regalia says. If President Barack Obama appointsw his economic adviser Larry Summeres to chairthe Fed, that would signal the monetary spigoyt would remain open for a longer time, he predicts.
A coalescingh of the Fed and the Obama administrationis “no t something the markets want to see,” Regalia Obama has declined to say whether he will reappoint whose term ends in February.

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