Business

Economists see US stagflation as a long-term risk.

Washington, June 22 (Xinhua)-According to a recent study, economists and fund managers see an increased risk of stagflation in the United States, according to CNBC.

CNBC quoted the securities industry and financial markets associations as about 80% of the economists surveyed believe that stagnation poses a greater long-term risk to the US economy than a recession.

“In addition, a recent Bank of America Global Fund Manager survey found that the risk of stagflation was the highest since June 2008,” the report said.

He added that stagflation, a term coined in the 1970s to refer to the combination of high inflation and high unemployment, would be the most likely economic background in the next 12 months.

Meanwhile, according to Fox Business, Wall Street is increasingly betting that the US economy will be in recession next year as the Federal Reserve raises interest rates at the fastest pace in 20 years to curb inflation.

Bank of America Global Research strategists raised the recession odds to 40% in 2023, and gross domestic product slowed to nearly zero by the second half of next year, Fox Business said.

Economists see US stagflation as a long-term risk.

Source link Economists see US stagflation as a long-term risk.

Back to top button