U.S. Seen Facing Back-to-Back Recessions in 2010

The Conference Board, a private research group, said in a report released Wednesday that although the U.S. economy is expected to return to growth later this fiscal year “back-to-back recessions, as occurred between 1980 and 1982 when the economy endured a systemic crisis rather than a regular recessionary period, are a potential risk at this time.”

“If the United States experiences a too rapid recovery, there may be a risk of another recession in 2010,” cautions Bart Van Ark vice president and chief economist of The Conference Board. “It may fuel expectations for a return to inflation, adding to the uncertainty concerning the pattern and path of economic recovery.” [via The Conference Board]

Van ark added, however, the likelihood of this scenario happening is small as deflation risks for the short and medium term are a greater threat, while massive governmental intervention through stimulus spending should stem further economic decline and ease the flow of job losses.

Create Content With AI

Try TradingView For Free

Risk Our Money Not Yours | Get 50% Off Any Account

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.