WASHINGTON, D.C.: Over the last decade, the world’s major economies floated themselves out of recession on oceans of easy money and low, or even negative, interest rates. But with much of the pain having subsided and US interest rates steadily rising, prominent investors and economists are shining a light on the issues that could trigger the next recession. “Add in the effects on business investment, and this spending crunch would push the economy into recession,” Feldstein wrote. Neither the Federal Reserve nor Congress are in a position to do much to respond, since there is little room to cut interest rates, and the government deficit and debt are high. “My view is that the next recession will be an average recession,” Naroff said, but added, “The worst-case scenarios are not unreasonable to project.”AFPLoading...

Source: Manila Times September 30, 2018 11:48 UTC